Energy dept 'closely monitoring' fallout from Saudi attack

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An attack on Saudi Arabia's key oil facilities has significantly raised tension in the Middle East with Houthi rebels in Yemen reported to have launched a fleet of drones on Saturday.

Locsin gave the statement after strikes hit Saudi Arabia, at Saudi Aramco's oil processing facilities in Abqaiq, as well as their oil field in Khurai.

He says Washington adopted a "maximum pressure" policy against Iran but because of "its failure, (the U.S.) is leaning toward "maximum lies" now.

The Abqaiq plant that has been attacked handles crude from Ghawar, the largest oil field in the world.

Tehran and Washington have been at loggerheads since May past year, when Trump pulled the USA out of a landmark 2015 deal that promised Iran relief from sanctions in return for curbs on its nuclear programme.

Aramco, which pumped about 9.8 million barrels a day in August, will be able to keep customers supplied for several weeks by drawing on a global storage network.

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Instead of supplying some customers with the usual crude oil grades of Arab Light or Arab Extra Light, the company may offer them Arab Heavy and Arab Medium as a replacement, according to a person familiar with the matter.

The Joint Forces Command of the Coalition continues to adopt and implement necessary measures "to deal with such terrorist threats in order to safeguard national assets, worldwide energy security and ensure stability of world economy", he said.

The electrical system can also be disrupted by cyber attacks, it added.

"I would expect a rough day for stocks tomorrow since this attack largely came out of the blue", said Nicholas Colas, Co-founder of DataTrek Research.

Saudi Arabia raced on Sunday to restart operations at oil plants hit by drone attacks which slashed its production by half, as Iran dismissed U.S. claims it was behind the assault.

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