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Attacks on Saudi Oil Facilities Knock Out Half Kingdom's Supply

Reuters

   RIYADH/DUBAI/LONDON -Yemen'sIran-aligned Houthi group said it attacked
   two plants at theheart of Saudi Arabia's oil industry on Saturday,
   knocking outmore than half the kingdom's output, in a move expected to
   sendoil prices soaring and increase tensionin the Middle East.

   The attacks will cut the kingdom's output by 5.7 millionbarrels per day
   (bpd), according to a statement from state-runoil company Saudi Aramco,
   or more than 5% of global oil supply.

   The pre-dawn strikes followed earlier cross-border attacks onSaudi oil
   installations and on oil tankers in Persian Gulf waters, butthese were
   the most brazen yet, temporarily crippling much ofthe nation's
   production capacity. Saudi Arabia is the world'sbiggest exporter,
   shipping more than 7 million barrels of oil toglobal destinations every
   day, and for years has served as thesupplier of last resort to markets.

   While the Houthis claimed responsibility for the attack,U.S. Secretary
   of State Mike Pompeo put the blame squarely onIran, writing on Twitter
   that there was "no evidence the attackscame from Yemen."

   "Amid all the calls for de-escalation, Iran has now launchedan
   unprecedented attack on the world's energy supply," Pompeosaid.

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