https://www.youtube.com/watch?v=mQefB3IHw1Q
Abu Dhabi (CNN Business)Drone strikes on crucial Saudi Arabian oil facilities have disrupted about half of the kingdom's oil capacity, or 5% of the daily global oil supply, people with knowledge of Saudi's oil operations told CNN Business.
Yemen's Houthi rebels on Saturday took responsibility for the attacks, saying 10 drones targeted state-owned Saudi Aramco oil facilities in Abqaiq and Khurais, according to the Houthi-run Al-Masirah news agency.
Five million barrels per day of crude production have been impacted after fires raged at the sites, one of them the world's largest oil production facility, people with knowledge of the kingdom's operations said. The latest OPEC figures from August 2019 put the total Saudi production at 9.8 million barrels per day.
A source told CNN Business that Aramco "hopes to have that capacity restored within days."
The Saudi interior ministry confirmed the drone attacks caused fires at the two facilities. In a statement posted on Twitter, the ministry said the fires were under control and that authorities were investigating.
"Abqaiq is perhaps the most critical facility in the world for oil supply. Oil prices will jump on this attack," Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University, said in a statement.
Wow. It shouldn't surprise anyone that yemen's Iranian-sponsored, Houthi rebels are responsible for this. Saudi Arabia has been at war with them for a few years now.
Anyway, how will this affect your daily lives, since oil prices will rise for at least the next few days or weeks? I'm guessing this won't effect many of you very much, but everybody's going to groan at having to pay more at the fuel pump.
Discuss.