U.S. oil and energy stocks were indicated sharply higher across the board Monday, and providing some upside support for the Dow Jones Industrial Average, after a series of weekend drone attacks on two key Saudi Arabian facilities lifted crude prices to their biggest single-day gain in more than two decades.
The weekend attacks, which U.S. officials have pinned on Iran, target the Abqaiq processing facility and the Khurais oil field, two key pieces of Saudi infrastructure that comprise around 5.7 million barrels of the Kingdom's daily output, a figure that represents around 5% of total daily global demand. President Donald Trump said the U.S. could tap its Strategic Petroleum Reserve, if needed, in order to maintain consistent supplies, while Riyadh said it would rely on 188 million of domestic crude stockpiles.
Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!— Donald J. Trump (@realDonaldTrump) September 15, 2019
U.S. oilfield services groups Halliburton Co (HAL - Get Report) and Schlumberger ltd (SLB - Get Report) were rising 7.4% and 5.65%, respectively, by mid-afternoon while GE-controlled Baker Hughes (BHGE - Get Report) was up 3.13% at $23.43 each.
European oil majors were also active, closing higher on the Monday session as BP plc (BP - Get Report) paced the FTSE 100 in London with a 4% gain and Royal Dutch Shell (RDS.A - Get Report) followed suit with a 2.53% advance. France's Total (TOT - Get Report) ended the session 2.5% higher in Paris.
Brent crude contracts for November delivery, the global benchmark, were seen $8.31 higher from their Friday close in New York and changing hands at $68.53 per barrel, after reaching as high as $71.95 per barrel earlier in the session, a near 20% gain that marked the biggest single-day spike since the Gulf War in 1991.