Saudi Arabia’s ability to quickly restore oil production after the weekend’s attacks on its oil facilities would demonstrate an important degree of resilience to potentially very damaging shocks, Moody’s said in light of the recent drone attacks against Saudi Arabia’s plants.
On 14 September, the drone strikes on plants of the state-owned oil company Saudi Aramco, in the heartland of Saudi Arabia’s oil industry, including the world’s biggest petroleum processing facility, knocked out more than half of Saudi oil output or more than 5% of global supply,
On Tuesday, the President and CEO of Saudi Arabia’s oil and gas giant said the kingdom would restore its lost oil production by the end of September.
The attack underscores Saudi Arabia’s exposure to geopolitical risk and a widening of the channels through which a crystallization of such risks can impact its sovereign credit metrics. Nevertheless, the ability to quickly restore production to normal, if confirmed later this month, would demonstrate an important degree of resilience to potentially very damaging shocks,
…Alex Perjessy, a Moody’s vice president, was quoted as saying by Reuters.
In a latest update, Rystad Energy chief oil market analyst Bjørnar Tonhaugen warned that there is the risk of a slower restart of Saudi Arabian oil production.
