Saudi Arabia Reveals Extent Of Damage To Oil Plants After Drone Strike

The story so far: Early on September 14, two critical Saudi Arabian oil installations near the Gulf coast came under attack. The drones and missiles that attacked the Abqaiq processing facility and the Khurais oilfield, both owned by Saudi Arabian Oil Company (Saudi Aramco), set off fires which lasted for hours and caused enormous damage, leading to a spike in international crude prices. The attack has also escalated geopolitical tensions in West Asia with the U.S. pointing fingers at Iran and Tehran in turn denying any role in the attacks and warning against any action against it.

The attacks can have a lasting economic and geopolitical impact. Saudi Arabia is one of the largest producers of crude oil in the world. It produces a variety of grades of crude, including light grade crude which is in high demand in Asia. It produces nearly 10 million barrels of oil every day. In August, the kingdom exported, on an average, 7 million barrels a day.

With its spare capacity — the ability to turn up supply to meet emergency demand situations — Saudi Arabia continues to play a critical role in global price stabilisation. In the past, it had pumped up supplies in the event of geopolitical shocks. At present, when the U.S.