REUTERS: Attacks on Saudi oil plants have boosted concerns about supply security in the Middle East and should raise the risk premium in the global crude market, shifting focus from a gloomy economic backdrop, S&P Global Platts said on Sunday.
Prices could move higher still if Saudi output is curtailed for a more substantial period, the note's author Chris Midgley, global head of analytics at S&P Global Platts, wrote. However, that is not its current assumption. Platts said, however, that"any evidence of prolonged disruption of production would heavily impact OPEC spare capacity and the ability of the IEA to use Strategic Petroleum Reserves to shore up the market".Yemen's Houthi group claimed responsibility for Saturday's attacks that knocked out more than half of Saudi oil output, or more than 5per cent of global supply. U.S. Secretary of State Mike Pompeo said the assault was the work of Iran, a Houthi ally.