Oil prices rise as Saudi attack disrupts global supply; airline stocks drop

Darren Wood
By Darren Wood September 16, 2019 11:30

Oil prices rise as Saudi attack disrupts global supply; airline stocks drop

Over the weekend an attack took place on a Saudi Arabian oil facility removing around 5% of global supplies which has seen oil post its biggest ever intraday jump to more than $71 a barrel, Bloomberg reports.

The attack, which the US has blamed on Iran, marks for oil markets, the single worst sudden disruption ever, says Bloomberg analysts Serene Cheong and Dan Murtaugh. The report continues, that while Saudi Arabia may be able to return some supply within days, the attacks highlight the vulnerability of the world’s most important exporter. They also add further political risk to prices, raising the spectre of more destabilisation in the Middle East and the threat of US retaliation against Iran.

Asian stocks have reacted to the strikes during trading hours Monday. China’s three biggest airline operators all dropped sharply in Hong Kong. China Eastern Airlines fell more than 4%, while China Southern Airlines and Air China each fell at least 2.5%.

Meanwhile, The flagship airline of Hong Kong, Cathay Pacific, fell 3.9% – the airline has already been struggling with fallout from months of pro-democracy protests in the city.

Darren Wood
By Darren Wood September 16, 2019 11:30