Rolling coverage of the latest economic and financial news, as attack on Saudi Arabia’s Abqaiq oil facility rocks markets
- Introduction: Saudi oil facilities attacked on Saturday
- Biggest disruption ever removes over half Saudi output
- Global output cut by 5%
- Oil surges 20% – biggest move on record (since the 80s)
- 1pm: Brent crude up 9% at $66
Donald Trump has made another attempt to calm the oil markets, declaring that the US economy doesn’t need supplies from the Middle East anyway.
He’s tweeted that the US is now a ‘net energy exporter’, but will still help “allies” in the region (Saudi Arabia).
Because we have done so well with Energy over the last few years (thank you, Mr. President!), we are a net Energy Exporter, & now the Number One Energy Producer in the World. We don’t need Middle Eastern Oil & Gas, & in fact have very few tankers there, but will help our Allies!
The US did not become the #1 energy producer because of Trump; it happened under Obama in 2012.
US is not a net energy exporter; the EIA predicts it will happen by next year.
US imported 30 million barrels per month from the Gulf as of June; that number has fallen under Trump. pic.twitter.com/L4gJ4z3UEO
Roadside assistance group the RAC has warned petrol stations not to hike prices, on the back of the Saudi attacks.
RAC fuel spokesman Simon Williams says retailers have only just begun passing on recent FALLS in the oil price — so shouldn’t now race to put prices up again.
“There was an inevitable initial panic-driven surge in the oil price on Monday morning, but the situation then cooled. While the wholesale prices of both petrol and diesel look set to increase by 3p a litre, this doesn’t necessarily mean higher prices at the pumps because retailers only just began to pass on overdue wholesale price savings at the end of last week.
At that point the 128p forecourt price of petrol was 7p too high which means retailers should have a cushion to absorb the spike. If the barrel price remains high for a sustained period however, it could easily lead to several pence a litre being added to the average price of both fuels. Even after Friday’s 3p supermarket cut petrol is still averaging 127.77p and diesel 131.26p.