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Jakarta Post

Saudi oil production disruption could cost RI $3.1 billion

  • Rendy Novalianto

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PREMIUM
Jakarta   /   Fri, September 20, 2019   /  12:04 pm
Saudi oil production disruption could cost RI $3.1 billion An Emirati man stands at the oil terminal of Fujairah during the inauguration ceremony of a dock for supertankers on September 21, 2016. (AFP/Karim Sahib)

A disruption cutting global oil supply by more than 5 percent is not just a worst-case scenario after Saudi Arabia announced that 50 percent of its oil production capacity had gone offline after a series of drone attacks last weekend. The attacks crippled an oil facility in Abqaiq that produces 7 percent of the global oil supply and the Khurais field that produces 1 percent of the global oil supply. The magnitude of the disruption is even worse than the effect of Iraq’s invasion of Kuwait or the Iranian Revolution. While the attack has caused a major disruption to the global oil supply, it was not the first time that oil facilities have been targeted in recent months. Earlier this year, several oil tankers in the Gulf were sabotaged. The attacks showed a major geopolitical crisis was brewing in the region. Moreover, Saudi Arabia also faces security and political problems i...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.