Home Political Zoo Saudi Arabia Shuts Down About Half Its Oil Output After Drone Strikes

Saudi Arabia Shuts Down About Half Its Oil Output After Drone Strikes



Yemen’s Iranian-aligned Houthi rebels claimed credit for the attack, saying they sent 10 drones to strike at important facilities in Saudi Arabia’s oil-rich Eastern Province. The production shutdown amounts to a loss of about five million barrels a day, the people said, roughly 5% of the world’s daily production of crude oil.

Officials said they hoped to restore production to its regular level of 9.8 million barrels a day by Monday. 

The strikes mark the latest in a series of attacks on the country’s petroleum assets in recent months, as tensions rise among Iran and its proxies like the Houthis, and the U.S. and partners like Saudi Arabia. The attacks could drive up oil prices if the Saudis can’t turn production back on quickly and potentially rattle investor confidence in an initial public offering of the kingdom’s national oil company.

The attacks happened a few days before world leaders are set to gather in New York for the United Nations General Assembly, where President Trump has said he is interested in meeting Iranian President Hassan Rouhani to defuse tensions. Iran didn’t react to the attacks on Saturday, and officials have said Mr. Rouhani won’t meet with Mr. Trump until the U.S. lifts sanctions imposed after the president pulled out of the 2015 international nuclear deal.

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