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(Bloomberg) – The record surge in Brent crude futures on Monday shows only part of the oil market reaction to the strike at a Saudi oil facility that cut about 5 percent of global supply. Here are five charts that shed more light on the granular impact.
Historical perspective
Brent futures have soared to $ 11.73 per barrel in intra-day trading, the largest increase since the contract was signed in 1988. The global benchmark jumped 19.48 % in percentage terms, the largest increase since the first Gulf War in 1991.
Disturbance scale
The estimated Saudi output loss of 5.7 million barrels per day is the largest sudden disturbance ever recorded. According to the International Energy Agency, it exceeded the supply losses of Kuwait and Iraq during the Gulf War in August 1990, as well as the impact of the Islamic revolution on Iranian production in 1979.
The timing is everything
Since the loss of oil is sudden, short-term delivery contracts are felt more strongly than further down the curve. The price gap between Brent for delivery in November and December 2020 doubled from $ 3.57 a barrel at the close of trading Friday to over $ 7 on Monday.
Protection of money
The options market shows that traders are still worried about the new price hike and are now paying to protect themselves. Calls on West Texas Intermediate futures are more expensive than put options for the first time since 2018.
Location, location, location
World oil prices are feeling the impact of the attack more intensely than those in the United States, where the benchmark is slightly dampened by being delivered to a landlocked oil center in the US. Oklahoma. The Brent premium on West Texas Intermediate rose 37% to $ 7.40 a barrel, the largest difference since July.
– With the help of Javier Blas and David Marino.
To contact the reporters about this story: Dan Murtaugh in Singapore at [email protected]; Alfred Cang in Singapore at [email protected]
To contact the editors in charge of this story: Ramsey Al-Rikabi at [email protected], Andrew Janes
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