On Saturday, drone attacks severely damaged a key processing facility in Saudi Arabia and knocked out close to half the country’s production capacity. In reaction to this sudden disruption, oil prices rallied up to 18% this morning before settling at a gain of 12%. Obviously, oil prices will remain high in the next couple of days until the production shortfall can be made up. But besides these short-term fluctuations, what are the medium- to long-term implications of these attacks for investors?
Are we heading for war in the Middle East?
Are we heading for war in the Middle East?
Are we heading for war in the Middle East?
On Saturday, drone attacks severely damaged a key processing facility in Saudi Arabia and knocked out close to half the country’s production capacity. In reaction to this sudden disruption, oil prices rallied up to 18% this morning before settling at a gain of 12%. Obviously, oil prices will remain high in the next couple of days until the production shortfall can be made up. But besides these short-term fluctuations, what are the medium- to long-term implications of these attacks for investors?