,,Sources quoted by Reuters and WSJ said the strikes had reduced production by five million barrels a day - nearly half the kingdom's output.'' ,,The Khurais oilfield produces about 1% of the world's oil, and Abqaiq is the company's largest facility - with the capacity to process 7% of the global supply.'' ,,The Saudi air force has been pummelling targets in Yemen for years. Now the Houthis have a capable, if much more limited, ability to strike back. It shows that the era of armed drone operations being restricted to a handful of major nations is now over.'' Source : BBC
Looks like this could pull back all the drillers, oil field service companies that were sitting on the edge. I would hate to be short oil futures.
Impossible to get in on Saturday action? Wonder how the Yemenis got a hold of decent Drone tech? Will the Iranians be blamed? Wonder if the US will pull a Carter Doctrine?
I am long OXY, XOM, and OXY Oct Calls. Closed all short calls a week ago. Monday open for those two will be interesting event to watch and rare. When was the last time such a drastic cut to production occurred?
I think the guy that hit the straddle at 11 or something in that range is going to bank big on his 30k calls.
This is going to be a fun week, the beat down low priced oil related stocks/instruments will suddenly be HOT. If this goes from a one off strike to an extended conflict, then the supplier sectors to the oil patch : finance , equipment, metals, housing, etc. etc. etc. could run. My mind is racing just thinking about it. It will be nice to trade in market not dominated by tweets. Anybody know how much of China's current oil supply comes from Saudi ?
Bit outdated tho : ,,In 2016, after the United States, the next four top importers of Saudi crude and petroleum products were Japan (1.2 million b/d), China (1.0 million b/d), South Korea (0.9 million b/d), and India (0.8 million b/d), according to GTT.'' Source : https://www.eia.gov/beta/international/analysis.php?iso=SAU