Due to a possible drone attack at an oil pumping station in Saudi, oil prices have hiked on May 14, 2019. Energy Minister of Saudi Arabia, Khalid al-Falih stated this as a terrorist attack. There were two attacks made on oil pumping stations, aiming for the East-West pipeline of the country. The attack was planned with drones to control the bombs.
The revenues for Brent crude futures went up to $71.38 for a barrel; it was more by $1.15. For U.S. West Texas Intermediate, the price for a barrel was $61.95 which was more by 1.4%. The minster has informed that the attacks could not harm the oil production. Aramco, Saudi’s State oil company told that gas and oil distribution to Europe was normal and none of them were injured. Falih has commented that this was a severe act of terrorism. Alongside this, the other activities happening in the Gulf of Arabia has not only put the country to danger but also put the security of oil distribution all over the world at risk. Accusation has not yet been put to anyone. However, a TV channel has said that the attack was carried out with drones on many Saudi installations. Another TV channel reported that seven drones were involved in conducting the attack on significant installations throughout Saudi.
Falih has further said that this incident has taught them to fight back terrorism also involving Yemen’s Houthi militias which Iran supports. Houthi rebels in Yemen had been strongly fighting against Saudi in their country. It all started back in 2015 when Saudi had launched an offensive against it. It was done to protect the country’s government which is recognized internationally. Houthi had overthrown that. UN later declared this conflict to be the worst in the history of humanitarian crisis. This incident has induced fear in areas rich in oil. There are also fears on a probable conflict with neighboring country Iran.