PXD - Oil CEOs Are Taking a Wait-and-See Approach After Attack Sends Crude Prices Soaring
Monday was an unprecedented day in the oil market. Over the weekend, enemies of Saudi Arabia conducted a drone attack on key parts of the kingdom's oil infrastructure, halving its production output. The damage to its crude-oil processing facilities cut the global supply by about 5%, making it the most significant disruption in the market's history.
Unsurprisingly, crude prices spiked. The U.S. oil benchmark, West Texas Intermediate (WTI), surged more than 15% to nearly $63 a barrel, its largest one-day gain in a decade. Meanwhile, Brent, the global crude oil benchmark, surged almost 20% at one point, its biggest jump ever.
Despite that monster rally in crude prices, and the uncertainty around when Saudi Arabia's output will return to normal levels, oil companies elsewhere aren't planning to ramp up their drilling activity -- yet. Instead, they're waiting for more clarity on the situation.