Johnson and Merkel Agree to Work on a Common Response to Attacks on Saudi Aramco
OREANDA-NEWS. British Prime Minister Boris Johnson and German Chancellor Angela Merkel on Tuesday agreed to work with partners around the world to consolidate the response to the attacks that Saudi Aramco’s businesses in Saudi Arabia were subjected to. This was reported by Reuters, citing a representative of Johnson.
"The parties discussed the Saturday attacks in Saudi Arabia and the need to work together with international partners to agree on a collective response", the agency quoted the representative as saying. He also noted that Johnson and Merkel on the Iran issue "reaffirmed their commitment to a common approach and the importance of avoiding further escalation of tension in the region". On Saturday night, Saudi Aramco enterprises were attacked by 10 unmanned aerial vehicles. The Yemeni rebels from the Ansar Allah movement claimed responsibility for this.
The Saturday attack forced Saudi Arabia to reduce oil production by 5.7 million barrels per day - this is half of the current production in the country and 5% of the entire world market. Bloomberg called the disruption one of the largest in history - it surpasses the losses of Kuwait and Iraq due to the outbreak of the Gulf War in 1990 and exceeds the damage from the Islamic Revolution in Iran in 1979.
At the time of the attack, stock trading in oil had already closed, and they resumed on Monday night. First of all, market participants naturally panicked - Brent went up by 13.8% - to $ 68.41 per barrel against $ 60.15 at the close of trading on Friday. At the same time, peak values in the first minutes of trading reached $ 71.95. The media noted that this is the largest intraday jump in prices over the past 30 years.
During the day, the market calmed down at first, and the price of Brent began to decline - by 2:30 p.m. Moscow time it returned to the level of $ 66.4, but by the end of Monday it still rose to $ 69.02.