15:59 GMT +317 October 2019
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    A picture taken on September 15, 2019 shows an Aramco oil facility near al-Khurj area, just south of the Saudi capital Riyadh.

    US Confident Oil Market to Respond ‘Positively’ to Attack on Saudi Plants - Energy Chief

    © AFP 2019 / FAYEZ NURELDINE
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    WASHINGTON (Sputnik) - The United States is confident that the global oil market will respond in a positive manner to the recent drone strikes on Saudi facilities, US Energy Secretary Rick Perry said on Monday.

    "We are very confident that the market is resilient and will respond positively," Perry said in a tweet.

    Oil prices soared after drones attacked Saudi oil processing facilities at Abqaiq and the Khurais over the weekend. The strikes knocked out 5.7 million barrels of daily crude production, representing 50 per cent of Saudi Arabia’s oil output and about 5 per cent of global supply.

    On Saturday, an Energy Department spokesperson said the United States stood ready to deploy resources from the Strategic Petroleum Oil Reserves (SPRO) to offset any potential oil market disruptions. The official also said that Perry directed the department to work with the International Energy Agency on options for collective global action.

    A picture taken on September 15, 2019 shows an Aramco oil facility at the edge of the  Saudi capital Riyadh.
    © AFP 2019 / FAYEZ NURELDINE
    A picture taken on September 15, 2019 shows an Aramco oil facility at the edge of the Saudi capital Riyadh.

    The SRO holds 630 million barrels maintained for exactly this purpose, an Energy Department official said over the weekend.

    US President Donald Trump on Sunday said that he authorized the release of oil from the SPRO if required. Trump also said he informed appropriate US government agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other US states.

    US officials told media that the attack was most likely launched from Iran or Iraq. However, Baghdad said Iraqi territory was not involved in the strikes. Iranian officials also denied US allegations.

    Tags:
    Iraq, Iran, Saudi Arabia, United States, oil production, drone attack, Saudi Aramco
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