Boiling oil soars in 28 years; Rupee tanks



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Crude oil prices rose most steeply over the last three decades before easing off, a pre-dawn attack on Aramco's oil facilities by Yemeni Houthi rebels forcing the Kingdom of Saudi Arabia to reduce oil prices. 60% its daily production of oil.

The worst disruption in the global oil supply resulted in a 19.2% increase in Brent crude prices, opening at $ 71.92 per barrel. However, during the day, prices moderated and traded at $ 65.4 per barrel, up 8.6%. This moderation results from the release of its oil reserves by the United States.

The attack on the Saudi oil company managed by the Saudi state led to the biggest disruption of the oil markets, exceeding the loss of oil reserves of Kuwait and Iraq in August 1990, when Iraq invaded its neighbor from South. The attack forced the company, which should soon be listed, to stop producing 5.7 million barrels (nearly 60%) of oil. Until the attack, the company had supplied an average of 9.9 million barrels of oil per day, or 10% of world oil production.

If Aramco confirms that the outage will last for weeks, the Brent attack should continue until the price reaches $ 80 and continues to rise, suggest analysts.

However, the Gulf Kingdom may suffice with 2.27 million barrels per day of unused capacity.

The surge in oil prices has led to a strengthening of the US dollar. As a result, the rupee fell sharply at the open Monday markets.

The national currency opened 70s lower on the interbank foreign exchange markets at 71.62 against the greenback, breaking with its six days of gains. The rupee had closed at 70.92 on Friday, a softening of crude oil prices and trade tensions between the US and China has heightened investor sentiment.

At the time of filing this copy, the rupee was trading at 71.52 against a US dollar, down 60s. Traders said the surge in crude oil prices, after the attack on Aramco's facilities, led to a stronger dollar.

After Iraq, Saudi Arabia is India's second largest supplier of crude oil and had supplied 295.6 million barrels (nearly 20% of total oil imports) over the past year. 19. The number is expected to have increased during the year2020 as a result of the imposition of US sanctions on Iran.

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