Oil Prices Jump $2 After Saudi Explosion

[phantom power]

February 24,2006 | WASHINGTON -- Crude-oil futures jumped by more than $2 a barrel after an attack on a massive oil facility in Saudi Arabia rattled an oil market already jittery about supply disruptions in Nigeria and Iran's nuclear ambitions.

Saudi Arabia is the world's largest oil producer, with production of about 9.5 million barrels per day -- an amount equal to about 11 percent of global consumption. The target of the attack, the Abqaiq oil complex in eastern Saudi Arabia, processes about two-thirds of the country's oil.

An Arab satellite television station reported that one pipeline at the Abqaiq oil complex in eastern Saudi Arabia was damaged by suicide bombers in two explosives-packed cars. The Saudi oil minister, however, said the attack did not affect operations or stop oil flow.

While terror attacks are not new to Saudi Arabia, oil analysts said this particular action was noteworthy because of how close the assailants came to a major oil facility.

http://www.salon.com/wire/ap/archive.html?wire=D8FVIRSO5.html

[benburch]

1. And so it begins.

DOWN WITH THE HOUSE OF SAUD!

[Skink]

2. Gas prices will now jump 2.00$

[MADem]

5. No, that is the price per barrel, not per gallon

If the Saudis catch a couple of guys and behead them publicly, the price will settle. This is market nervousness at play. Is it real, or manufactured? Who the hell knows anymore.

[nadinbrzezinski]

3. Yep, you are correct

and the end of the American Empire too

[MADem]

4. I don't think the Saudis will put up with this shit indefinitely

That crunch you hear is America turning her head while even more draconian measures are put into place. Look away as the beheadings begin....gotta feed the world that yummy oil, now.

[jpak]

6. And when I-ranian SCUDs start raining down on these facilities

(in retaliation to ChimpCo's nucular luddite air strikes)

how much higher will oil prices rise????

[Sequoia]

7. Oh sure, they're just mad we're stalling on the port deal.

So they got some "bad dude" to blow it up and raise the prices just to spite us. "See what we can do to you".