Saudi Arabia reportedly shuts down half its oil production after drone attack – CNBC, CNBC

Saudi Arabia is shutting down half of its oil production after drones attacked the world’s largest oil processing facility in the kingdom,The Wall Street Journal reported.

The closure will impact almost five million barrels of crude production a day, about 5% of the world’s daily oil production, the WSJ reported, citing sources familiar with the matter.

Early Saturday, an oilfield operated by Saudi Aramco, the state-owned oil giant,was attacked by a number of drones, which sparked a huge fire at a processor crucial to global energy supplies.

Yemen’s Houthi rebels have claimed responsibility for the attack, saying it was one of their largest attacks ever inside the kingdom, the WSJ reported.

“We promise the Saudi regime that our future operations will expand and be more painful as long as its aggression and siege continue, “a Houthi spokesman said. The attack involved 10 drones, the Houthis said.

The Saudi interior ministry said the fires were under control.

Saudi officials are considering drawing down their oil stocks to sell to foreign buyers to make sure world oil supplies won’t be disrupted by the attack and shutdown, the WSJ reported.

The Iran-backed Houthis had been behind a series of attacks on Saudi pipelines, tankers and other infrastructure in the past few years as tensions rise among Iran and the US and partners like Saudi Arabia.

The Islamic Republic, a target of U.S. sanctions for decades,has recently attacked oil tankersin the Strait of Hormuz, shot down aUS military droneand announced plans to execute17 suspected US spies.

Saudi Arabia is moving forward to take Saudi Aramco publicin a major shakeupof the kingdom’s energy sector. The world’s most profitable oil company is expected to be valued at more than $ 1.5 trillion, CNBC previously reported.Crown Prince Mohammed bin Salman has pushed for a valuation of as much as $ 2 trillion.

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