Saudi Aramco has suspended operations at its Ras Tanura refinery after a fire broke out due to a suspected drone attack. This has led to a halt in the loading of crude oil from the refinery, which normally processes around 550,000 barrels per day. This is not the first time Aramco’s operations have been affected within the past week.
Reports from Bloomberg indicate that the attack happened during the drone and missile attacks carried out by Iran targeting some of its Gulf neighbors. Saudi Aramco has not yet commented on the situation.
Ras Tanura, located on the Saudi Gulf coast, is one of the largest oil export terminals in the world and an important refining center. It is an important port for Saudi Arabian oil exports, which are shipped to major markets in Europe and Asia, including China, Japan, and South Korea.
The refinery processes crude oil from some of the kingdom’s biggest oil fields, which include Ghawar, the world’s largest conventional oil field, as well as Abqaiq and Khurais, which were previously hit in 2019. This attack temporarily halved Saudi Arabia’s oil output, leading to the largest increase in oil prices since the Gulf War in 1990.
If Ras Tanura remains offline for a long time, the impact will be felt globally. Lower Saudi oil exports will result in higher oil prices globally, which will have a major impact on the economies of other countries. Analysts have stated that further disruptions in Gulf oil supplies will result in uncertainty for the world.
This disruption is due to operational issues faced by Saudi Arabia’s Juaymah LPG plant, which is near the major LNG/LPG export center of Ras Tanura. The Juaymah plant is near the Jafurah gasfield and is one of the largest exporters of natural gas liquids in the world.
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Recent incidents highlight the Gulf region’s critical energy infrastructure. The Ras Tanura facility, an important Saudi Arabian hub for the export of crude oil, means even the brief closure can have implications for the global supply chain and energy markets. The authorities are now looking at the damage and the process of reopening the facility.
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