On Monday, crude oil prices surging around 20 per cent, the drone strikes on the world’s biggest oil producer, Saudi Arabian Oil Co., or Saudi Aramco; India, the world’s third-largest oil importer is bracing itself to stem any impact on its consumers.
However, the reported strikes by 10 drones at Abqaiq and Khurais oil facilities, disrupted more than half of Saudi Arabia’s oil capacity or 5.7 million barrels per day (mbpd), the enormity of the situation can be gauged from the fact that it is being termed as the far worst shock to global supplies than when Saddam Hussein invaded Kuwait in 1990 and 1979 Islamic Revolution in Iran.
International benchmark Brent crude futures soared $11.73 to $66.91 per barrel. US West Texas Intermediate crude futures jumped $8.49 to $59.76 per barrel. Some traders worldwide are speculating if oil prices will cross the $100-mark yet again. In July 2009, extreme volatility has marked crude oil prices, hitting a record $147 per barrel.