WTI and Brent oil prices soared amid Saudi production cuts

World oil prices at the opening of trading on the ICE exchange in London showed a sharp rise after Saudi Arabia cut production amid drone attacks on Saudi Aramco plants. This is evidenced by the auction.

The price of Brent crude futures for November delivery rose 13.86% to $ 69.91 per barrel. At the same time, in the first minutes of trading, the price of Brent oil reached a value of $ 71.95 per barrel. At the previous close, it was just over $ 60 per barrel.

The price of October futures for WTI crude oil increased by 11.23% to $ 61.79 per barrel (against almost $ 55 at the previous close).

On the eve of September 15, analysts and traders told US News Life that oil prices will jump by $ 5-10 per barrel at the opening of trading on Monday, September 16. At the same time, they admitted that in the long term, prices might rise to $ 100 per barrel if Saudi Arabia will not be able to resume quickly oil supplies.

Riyadh decided to cut production after a fire broke out at two major oil fields of Saudi Aramco. It was caused by a drone attack. The attack in the Abqaiq field and Hurais in the Central part of Saudi Arabia on the morning of 14 September.

The attack has reduced the level of oil production in the Kingdom by almost half. President and CEO of Saudi Aramco Amin Hassan al-Nasser said that the company suspended production of 5.7 million barrels per day. This is half of the daily production.

US Secretary of state Mike Pompeo accused the Iranian authorities of involvement in the attacks on the oil fields of Saudi Arabia, calling on all countries to condemn “publicly and unconditionally” the attacks. The Houthis claimed responsibility for the attack.