PXD - What the Attack on Saudi Arabia's Oil Infrastructure Means for the Oil Market
Drone attacks on Saudi Arabia's oil infrastructure over the weekend shook the oil market to its core. The hit caused the leading oil producer to take half of its production offline. At more than 5 million barrels per day, that equated to 5% of global supplies disappearing from the market. It's the largest disruption ever to hit the oil market.
Oil prices responded in kind. The U.S. oil benchmark, WTI, skyrocketed more than 15%, rising above $60 a barrel. That marked its largest one-day move in more than a decade. Meanwhile, the global benchmark price, Brent, was up as much as 19.5% at one point, which was its biggest gain on record. That spike caused shares of oil producers to go ballistic.
The oil market is still sorting out how this attack will affect the global oil supply. Here's a look at how it might affect the oil market.