About 5.7 million barrels per day out
Saudi Arabia is racing to restore half its oil production after 10 unmanned drones struck the world's biggest crude-processing facility and the country's second-biggest field.
Several reports say the country will need 'weeks' to restore full production and that's not a surprise given videos of massive fires at the facility.
However how much remains offline is tougher to say. It may only be days before a significant amount of production resumes. Saudi Arabia also has large reserves that can act as a buffer for the export market.
Reuters reports that Aramco told one Indian refinery there will be no impact on supplies and that it has adequate inventory to meet demand.
Another focus is on how Iran may respond. There are rumors of a strike on Iran but that's may be overstated. US officials said they would be prepared to take action if Iran attacked Saudi Arabia and also said they were ready to tap into the strategic petroleum reserve if necessary.
It will be a very interesting open for the oil market and any gains should also help to boost CAD and other oil producers. There is talk of a $5 jump in oil but that sounds like too much to me but geopolitics is more about emotion and fear than fundamentals.
