RE: Saudi Arabia Shuts Down About Half Its Oil Output After Drone Strikes14 Sep 2019 19:52
I expect it will effect the price of oil, it will certainly get milked to have that effect... we'll see.
Good for RRE as higher oil and bullish oil in general is obviously good for any oil producer... on the flip side, we are looking for a producing acquistion and a depressed oil price and outlook may help deliver a better value deal. Then again, a deal may well be well advanced already.
"According to Reuters reports the drone attacks will impact up to 5 million bpd of oil production, which suggests that the price of oil - already severely depressed by the recent news that John Bolton is out, making de-escalation with Iran far more likely - is set to soar when trading reopens late on Sunday, just what the upcoming Aramco IPO desperately needs, which in turn has prompted some to wonder if the "Yemen" attack on Saudi Arabia wasn't in fact orchestrated by Saudi interests. 18 years after Sept 11, this shouldn't sound all that outlandish... "
"And while Aramco is assuring it can restore output quickly, in case it can't the world is looking at a production shortfall of as much as 150MM barrels monthly, which - all else equal - could send oil soaring into the triple digits. Just what the Aramco IPO ordered."