Saudi bourse slumps after oil facility attacks » Manila Bulletin Business

Manila Bulletin Philippines

Breaking News from the Nation's leading newspaper

Tempo

Online Newspaper

Showbiz and Celebrity News

Sports News

World News
News Asia

Saudi bourse slumps after oil facility attacks

Updated

By Agence France-Presse

Saudi shares slumped at the start of trading Sunday, the first session after drone attacks on two major oil facilities knocked out more than half the OPEC kingpin’s production.

Smoke billows from an Aramco oil facility in Abqaiq about 60km (37 miles) southwest of Dhahran in Saudi Arabia's eastern province on September 14, 2019. - Drone attacks sparked fires at two Saudi Aramco oil facilities early today, the interior ministry said, in the latest assault on the state-owned energy giant as it prepares for a much-anticipated stock listing. Yemen's Iran-aligned Huthi rebels claimed the drone attacks, according to the group's Al-Masirah television. (Photo by - / AFP)

Smoke billows from an Aramco oil facility in Abqaiq about 60km (37 miles) southwest of Dhahran in Saudi Arabia’s eastern province on September 14, 2019. (Photo by – / AFP / MANILA BULLETIN)

The Tadawul All-Shares Index, which tracks the Arab world’s largest capital market, sank three percent, shedding some 200 points in the first few minutes before regaining some of the losses.

Just under one hour into the session, TASI was down 1.50 percent at 7,715 points.

The key energy sector plunged 4.7 percent, while the telecom and banking sectors each slid three percent.

The market was also affected by an announcement from the Saudi Basic Industries Co. (SABIC), one of the world’s largest petrochemicals producers, that the industry faced a shortage of raw materials.

It did not name the reason but said the issue arose on Saturday — the day of the drone attack.

Other bourses in the Gulf also dropped. Dubai Financial Market was down 1.1 percent, Abu Dhabi and Qatar markets declined 0.4 percent each, while Kuwait shares sank 0.8 percent and Bahrain’s bourse slid 0.9 percent.

Oman’s shares were flat.

Explosives-laden drones struck the processing plants at Abqaiq and Khurais in the Eastern Province early on Saturday morning, knocking out some 5.7 million barrels per day of crude oil production and around two billion cubic feet of natural gas output.

The Abqaiq plant handles some seven million bpd of crude oil and billions of cubic feet of natural gas.

State-owned energy giant Aramco in March acquired 70 percent of SABIC, the largest capitalized firm on the Saudi market, for $69.1 billion.

 

READ MORE: Drones spark fires at two Saudi Aramco oil facilities

Related Posts