Saudi Aramco facility attacked again; extent of the damage still being assessed

Saudi Aramco’s oil facilities in Jizan were targeted on Monday in new wave of strikes, raising concerns over risks to Saudi oil supplies, according to the Financial Times.The extent of the damage is still being assessed. According to people familiar with the incident, the latest strike was similar in scale to the attack last month, which temporarily disrupted some production at the facility. Aramco has not yet provided an official comment on the latest incident. Jizan, located in southwestern Saudi Arabia close to the Yemeni border, has repeatedly been targeted by Yemen’s Iran-aligned Houthi movement. Previous attacks have hit Saudi oil infrastructure in both Jizan and Yanbu, adding another layer of geopolitical risk to an already fragile oil market. The latest development comes after Aramco CEO Amin Nasser said last month that attacks on the company’s facilities had caused some temporary production interruptions, but had not resulted in a material operational or financial impact. The Jizan refinery has a processing capacity of around 400,000 barrels per day, making any prolonged disruption potentially significant for regional energy markets. For the crude oil market, the attack adds to an already elevated geopolitical risk premium. Crude prices are currently being driven by multiple potential supply disruptions, including heightened tensions around the Strait of Hormuz and attacks on energy infrastructure across the region. Oil prices spiked higher following the news of the attack. The market continues to be driven by supply disruption headlines, with US-Iran strikes having the highest impact. Without a de-escalation, the downside will remain limited and oil prices will continue to drift higher. This article was written by Giuseppe Dellamotta at investinglive.com.