Oil Spike to “Triple Digits” possible as 5% of Global Production lost in Drone Attack

Drone strikes targeting Saudi oil reserves could create chaos as global markets open Monday, in particular creating a massive spike in energy prices.

On Friday, Brent crude futures closed at $US60.22 a barrel. It is unknown how high prices could go as markets open.

A statement by Aramco confirmed the attacks had wiped out 5.7 million barrels of crude oil production a day or 5 percent of the world’s daily oil production.

While Aramco is confident that it can recover quickly, the world could face a production shortage of as much 150MM barrels per month if the recovery is delayed.

Some suggest that this could send oil prices into the triple digits.

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US Energy Secretary Rick Perry “stands ready” to tap the country’s Strategic Petroleum Reserve to steady oil markets if necessary, a department spokesperson said in a statement. The country’s emergency oil supply — a series of storage tanks and underground caverns created after the oil crises of the 1970s — holds 630 million barrels of crude, an Energy Department official said.

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