The United Nations Secretary General has condemned attacks on oil facilities in the Eastern Province of the Kingdom of Saudi Arabia causing a spike in global oil prices and concerns of a further military escalation in the region.
US crude futures were last up 11% at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output. Brent crude soared 13% at $68.06 after earlier rising to $71.95.
Saudi stocks fell sharply on Sunday, after attacks on two plants at the heart of the kingdom’s oil industry a day earlier knocked out more than half of Saudi crude output.
US Secretary of State Mike Pompeo on Saturday accused Iran of leading attacks on Saudi oil plants that have cut the kingdom’s output roughly in half, as he ruled out Yemeni involvement and denounced Tehran for engaging in false diplomacy.
An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country’s production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.