Saudi races to restore oil supply, strike blamed on Iran

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"We are locked and loaded depending on verification, but are waiting to hear from the Kingdom [Saudi Arabia] as to who they believe was the cause of this attack, and under what terms we would proceed!"

Another source briefed on the developments said Saudi oil exports would continue to run as normal this week thanks to large storage in the kingdom, the world's top oil exporter.

There was no immediate impact on global oil prices from the attacks as markets were closed for the weekend, but analysts anticipate a spike in oil prices when markets reopen on Monday.

US President Donald Trump said on Sunday he authorized the release of oil from the US Strategic Petroleum Reserve (SPR) if needed in a quantity to be determined.

Trump also is apparently trying to ward off concerns by tweeting "PLENTY OF OIL!"

The Saturday attacks shut down production on roughly 5% of the world's daily production of crude oil, equal to about 5 million barrels.

Global bonds were sold off last week, sending yields higher, led by a broader risk rally on hopes the United States and China would soon end their long trade war.

"Tehran is behind almost 100 attacks on Saudi Arabia while [its leaders] pretend to engage in diplomacy", Mr. Pompeo tweeted.

Despite the denials, USA satellite imagery showed the attack did not come the south - where Iranian-backed Houthi rebels are located - but instead came from Iran's direction, the Associated Press reported.

Additional devices that missed their targets were recovered northwest of the facilities and are being jointly analyzed by Saudi and USA intelligence, The Associated Press reported.

USA crude futures were last up 11 per cent at $61.10 a barrel, coming off highs on expectations other global oil suppliers would step in to lift output.

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The Journal reports that Saudi officials say a third of crude output will be restored Monday.

The attacks Saturday claimed by Yemen's Houthi rebels resulted in "the temporary suspension of production operations" at the Abqaiq processing facility and the Khurais oil field, Riyadh said.

"The Secretary-General condemns Saturday's attacks on Aramco oil facilities in the Eastern Province in the Kingdom of Saudi Arabia claimed by the Houthis", according to a statement from spokesman Stephane Dujarric.

Russian Federation and China both said it was wrong to jump to hasty conclusions about who was responsible for the attack.

The loss of more than 5% of the world's oil supply - no matter for how many days - is not an internal Saudi matter, she said.

"Iran will not stop their misbehaviour until the consequences become more real, like attacking their refineries, which will break the regime's back", Graham wrote on Twitter.

Hajizadeh, the Guard brigadier general who leads its aerospace program, gave an interview published across Iranian media that discussed Iran's downing of the United States drone in July. Officials said they would use other facilities and existing stocks to supplant the gap in production.

It's also set to escalate a showdown pitting Saudi Arabia and the U.S. against Iran, which backs proxy groups from Yemen to Syria and Lebanon. Countries attacking each other's oil facilities and fields is a "prescription for a high oil price".

A spokesperson for Iran's foreign ministry, Seyyed Abbas Mousavi, rejected the accusation that Tehran was behind the attacks, saying that "blind accusations and inappropriate comments in a diplomatic context are incomprehensible and meaningless".

Donald Trump called Saudi Arabia's crown prince, Mohammed bin Salman after the attack to express U.S. support for Saudi security, the Saudi foreign ministry said.

The attack came after Trump said a meeting with Iranian President Hassan Rouhani was possible at the UN General Assembly in NY this month.

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