Joseph Schachter on BNN talks about risk premium being applied to oil markets. Prices will be determined by how long it takes to get Saudi oil facilities back online. Canadian oil and gas to benefit due to security of supply.
https://www.bnnbloomberg.ca/video/josef-schachter-s-market-outlook~1780599
This attack is bringing into focus how vulnerable oil supply really is. This could benefit the Canadian oil and gas sector as its huge reserves get a premium due to their relative security of supply.
The world still runs on oil and a few missles or drones just knocked 5% of world oil prodcution out of the box.
This attack was successful so expect more of this not less.
If the US determines that Iran was involved than I expect in escalation of events including a retalitory strike on Iran. Many in the US, Saudi, and Israel are itching for this.
Some analysts are saying long lead time items that were specifcally targeted in the attacks could lead to longer than anticpated oil supply disruptions.
Saudi Arabia, too, is holding a more reserved position that initially thought, believing now that less than half the capacity at the Abqaiq processing plant can be restored quickly, according to Bloomberg sources that spoke on condition of anonymity. One of the longer lead-time items of the restoration are Abqaiq’s stabilization towers that separates out the dissolved gas from the crude oil—a distillation process that sweetens sour crude, if you will.