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Saudi Arabia's state oil company, Aramco, shut down its Ras Tanura refinery after a drone attack, with video showing smoke billowing from the facility. Aramco's chief executive warned of 'catastrophic consequences' for global oil markets if the Strait of Hormuz remains blocked, while another official, Al-Kaabi, stated a prolonged conflict could push oil prices to $150 per barrel.
In response to drone attacks targeting its largest oil refinery, Saudi Arabia is redirecting its oil exports away from the Strait of Hormuz. Aramco's head reiterated that a continued disruption of shipping in the strait would have catastrophic consequences for global oil markets. Separately, the OPEC+ group of oil-producing countries agreed to increase oil production by more than expected, a decision made as conflict involving Iran was disrupting regional shipments.
Concurrently, Saudi Arabia is cutting its oil production by 20% and urgently reviewing plans to export crude through alternative routes, such as the Red Sea, to avoid the Strait of Hormuz. This follows the shutdown of the Ras Tanura refinery after it was hit by a drone strike from Iran, which caused a fire and forced the suspension of operations.
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2 topics | 140 sources
Mar 13 — Mar 26
Saudi Arabia reroutes oil exports after attacks and a key shipping lane closesSaudi Arabia's main oil company, Aramco, is urgently shifting its crude exports away from the Strait of Hormuz after the vital waterway was blocked. The company is activating its East-West pipeline to full capacity to send oil to Red Sea ports instead. This comes after Iranian drone strikes hit and temporarily shut down the massive Ras Tanura oil refinery on Saudi Arabia's east coast. Aramco's chief executive warned that a prolonged closure of the Strait of Hormuz would have catastrophic consequences for global oil markets. In response to the supply disruption, the OPEC+ group of oil-producing nations agreed to increase production by a modest amount. Meanwhile, oil prices have surged to multi-year highs as the conflict creates uncertainty over future supplies from the Gulf region.