Attacks on Saudi oil to leave limited impact on global economy

The attacks on Saudi Arabia's key oil facilities have led to a surge in global oil prices, but experts said the incident might only have a short-term influence on the market and have a limited impact on the global economy.

Global crude stocks could provide a cushion against supply shortages in the near term, said Caroline Bain, chief commodities economist at Capital Economics. She said analysts estimate that inventories amount to 6.1 billion barrels, or 61 days of global demand. Bain said if Saudi Aramco restores output fully in the next week or so, the price of Brent crude will fall back to 60 dollars per barrel by the end of the year.

The analyst said the incident's impact on the global economy is limited for now, adding this short-term disruption to oil production will not trigger a global recession as Saudi Arabia's oil markets are well supplied with ample commercial stocks.

Source: VOV5