• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 4 hours In a Nutshell...
  • 45 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 2 hours Is OilPrice a cover for Green Propganda
  • 6 hours Putin Paid Militants to Kill US Troops
  • 3 hours Why Wind is pitiful for most regions on earth
  • 2 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 22 hours Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 2 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 1 hour Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 23 hours Happy 4th of July!
  • 21 hours Apology Accepted!
  • 2 days The Political Genius of Donald Trump
  • 3 days Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link

The Truth And Repercussions Of The Saudi Drone Attack

48 hours ago, the million-dollar question for hedge funds was when the Saudis would be able to bring production back up to full capacity after the multiple, surgical strikes on Aramco facilities Saturday. Supply has now been largely restored, and the damage has been clarified after much panic.

The worst strikes in terms of visible damage based on satellite imagery were the processing facilities at Abqaiq (image 1), with the lower far-left infrastructure being the hardest hit, and to a lesser extent, the Khurais oilfield, which is 180KM southwest of Abqaiq (image 2):

Abqaiq is the key here.

Lack of clarification wreaked havoc on the market for a couple of days, with the Saudis downgrading an initial estimate that they would be able to get significant capacity back online in a matter of days. On Monday, that estimate was changed to a vague range of weeks or months as officials continued to assess the damage and necessary repairs.

On Monday, we advised private clients that there is enough Saudi domestic storage to last just shy of a month, and that the rest would be made up from bringing idle fields back online, while in the end, the effect on the market in terms of supply and demand would be less dramatic than the initial jump in oil prices warranted.

By Tuesday, the markets had largely forgotten about the attack from a technical standpoint. Oil prices pared gains, and the market shifted its focus back to the Fed. The Saudi energy…




Oilprice - The No. 1 Source for Oil & Energy News