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The Saudi Arabian stock index fell 3% Sunday (September 15, 2019) after the attack of two oil facilities in the kingdom the day before, stopping more than half of its production. Today's losses continue in the direction of the decline in Saudi equities, which have been hit in recent weeks by high values and low oil prices, as well as concerns over the economic outlook.
Saudi Basic Industries Corp. (Sabic), the kingdom's largest petrochemical company, lost 3.3% after reporting a 49% shortfall in value supplies after the attack. Other petrochemical companies, such as Yanbu, National Petrochemicals and Kayan, have also announced a significant reduction in the supply of raw materials.
The attacks are timely for Saudi Arabia, which is preparing to register Saudi Aramco on the Riyadh Stock Exchange later this year.
At the same time, a well-informed source told Reuters that the full return of Saudi oil supply capacity after the attack on two Aramco facilities on Saturday could take "weeks and not days". The attack on Abqaiq and the Khurais stopped about 5.7 million barrels of Saudi oil production a day and the Saudi authorities have not given any timetable for a full return of stocks.
The Eurasia risk advisory group said in a note that it was unlikely that the attacks would attack Aramco 's much – anticipated IPO projects, but could affect the market. ;Evaluation. "The recent attack on Aramco's facilities will have a limited impact on Aramco's stock interest, as the initial phase of the listing will be local.The international component of the transaction will be more sensitive to geopolitical risks. . "
Aramco has appointed nine banks as global coordinators to lead the IPO, which is expected to be the largest in the world, Reuters reported, citing two sources. The energy sector, which is very important for the world's largest oil exporter, fell 4.7%, while the telecommunications and banking sector fell by 3%.
Other Gulf stock markets, such as the Dubai financial market, fell 1.1%, while Abu Dhabi and Qatar lost 0.4%, while Kuwait's indices fell by 0%. 8%. The Bahrain Stock Exchange lost 0.9%, while that of Oman was unchanged.
The Trump administration said it was ready to pull out of strategic oil reserves if needed. The US Department of Energy manages strategic oil reserves in heavily guarded underground reservoirs on the Texas and Louisiana coasts. According to the ministry's website, the US reserve, the largest of its kind in the world, represents about 645 million barrels of oil. It includes 395 million barrels of heavy sulfur crude oil and 250 million barrels of light crude oil.
Political reactions continue
On the political front, Iraq has denied using its territory to attack the Saudi oil installations by drones. In a statement issued by the office of Iraqi Prime Minister Adel Abdul Mahdi, Iraq has affirmed its "constitutional commitment to prevent the use of its territory to attack its neighbors, brothers and friends" .
At the same time, Lebanese Prime Minister Saad Hariri condemned the attack, which he described as "a serious escalation that augurs an extension of the conflicts in the region".
Turkey has also condemned the attacks, stressing in a statement by the Anatolian Agency, "the importance of avoiding any provocative measures that could affect the security and stability in the region and in the Gulf ".
AFP / AFP (AFP, Reuters, DPA)
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