Nick Butler

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Oil prices ended nearly 15% higher on Monday, with the Brent benchmark, its biggest jump in More Than 30 years.

The Rise came after two attacks on Saudi Arabian facilities on Saturday knocked out about 5% of The World 's supply.

Brent crude Oil initially surged to 20% at the beginning of the trade, but eases back to end at $69 per barrel, up 14. 6%. US Oil prices finished up 14. 7%, the biggest jump since 2008.

prices dropped after President Donald Trump have vowed to get rid of US reserves.

The Strike , the US blamed on Iran, sparked fears of an increased risk for the Energy supply of the region.

However, prices remain below the Brent 12-month high of $86. 29 a barrel seen last October, when West Texas Intermediate climbed to More Than $76 per barrel.

The drone attacks on installations in the interior of Saudi Arabia , the Oil -industry-hit, The World 's largest Oil -processing plant and a nearby Oil field, both operated by the Energy giant Aramco.

you have a combined share of about 50% of Saudi Arabia 's Oil output, or 5% of the daily global Oil production. It could take weeks, until the plant fully on line.

Aneeka Gupta, a commodity strategist at the Fund manager, wisdom tree, said that higher Oil prices would not immediately impact on the consumer, because they "could be a little bit of time, the feed-through".

But she says that even if the interruption lasts for More Than Six Weeks , The Price of Oil could hit "North of" $75 per barrel.

Bob McNally, President of Rapidan Energy group and a former Energy adviser to George W. Bush administration, told the BBC: "I think that it Will take. As long as the United States and Saudi Arabia on one side and Iran on The Other , remain in this escalatory conflict then we Will build in a risk premium, because it is always very serious. "

U.S. Secretary of state Mike Pompeo claims that Tehran was behind the attacks. Iran accused the United States "wore. "

Later, Mr Trump said in a tweet that knew US, who was the culprit and was "locked and loaded", but Will wait to hear from the Saudis how they wanted to go.

In another tweet, he said it was "a lot of Oil !".

What is inventories, the impact on the Oil ?

The Saudis have hardly any Details about the attacks, apart from to say there were no casualties, but have a few more details about the Oil -production.

Energy Minister Prince Abdulaziz bin Salman, said some of the traps would be in production by tapping on huge storage facilities.

The Kingdom is The World 's largest Oil exporter, shipping More Than seven million barrels A Day . Saudi share amounted to 188 million barrels in June, according to official figures.

"Saudi authorities have claimed to be in control of the fires, but this is by far not extinguish," said Abhishek Kumar, head of analytics at Interfax Energy in London. "The damage to facilities in Abqaiq and Khurais appears to be extensive, and it can take weeks before Oil is normalized to be supplied. "

However, Jeffrey Halley, senior market analyst at Oanda, said the disorder would not affect crude Oil supplies in the next time

"There is enough capacity in the storage to meet that gap in the short-term. "

gasoline prices rise?

drivers Will not be an immediate increase in the pump sees, according to the international Energy policy expert Prof Nick Butler .

"The direct effect of the attacks could be short-lived," he said.

"has adapted to The market, without blinking, over The Last two years, the loss of political reasons for over two million barrels per day of production from Venezuela and Iran. "

In the UK, 40% of The Price of a litre of petrol is made from Oil -, fuel-production and profit. The rest is tax.

"There are currently savings in the wholesale price, which have just begun, and to pass on to the driver, the retailers," says Simon Williams , from the RAC.

"lower, Many retailers their prices by 3p on Friday and we believe that the average prices were six pence is too high, so that the effects of this fire must not be too large. "

But, Mr. Halley said that the global fuel prices are likely to increase: "you Will see increases in The Price of gasoline around The World . Consumers Will first notice it fairly quickly in higher gasoline prices. "

He was also warned to watch "airline fuel surcharges" which could also rise, depending on the airline fuel price hedging policy.

How much Oil is held in reserve?

The U.S. instead of 644. 8 million barrels of Oil into the memory 6. September, according to The Department of Energy .

holds the Oil in underground salt caverns over four locations in Texas and Louisiana on The Gulf of Mexico coast.

The hollow cylindrical 200 feet in diameter and 2,000 feet spaces are generally high, and overall, you can Oil up to 727 million barrels.

A salt cavern in Louisiana, where the U.S. stores millions of barrels of Oil

The USA also has about 416. 1 million barrels of Oil in commercial storage, such as the Oil producers and refineries, based on data from the.

In Saudi Arabia , the Oil has plunged production, by 5. 7 million barrels per day because of the attacks.

It has approximately 188 million barrels of Oil in reserve, according to the Energy consultancy the Rapidan group.

oil, oil & gas industry, iran-us relations, opec, saudi arabia, saudi oil drone attack, energy industry

Source of news: bbc.com