Stocks Opened Lower, Oil Prices Surge after Saudi Attack

U.S. stocks opened lower on Monday, after oil prices jumped sharply in the wake of a weekend attack on Saudi Arabia’s largest oil facilities led to massive supply disruptions out of one of the world’s largest production centers. The Dow Jones Industrial Average lately fell 93.67 points, or 0.34%, to 27,125.85. the S&P 500 was off 10.75 points, or 0.36%, to 2,996.64. The Nasdaq Composite lost 30.99 points, or 0.38%, to 8,145.72.

Crude oil prices surged more than 10% late Sunday and U.S. stock futures retreated following weekend attacks against Saudi Arabian oil facilities. West Texas Intermediate crude for October delivery jumped 11%, up $6 to $60.85 a barrel. Brent crude prices for November delivery, initially shot up 18% as trading began late Sunday, but quickly settled down to a gain of about $7, or 13%, to $67.86 a barrel.

Drone strikes hit two Saudi Arabian oil facilities on Saturday, knocking out about half of the country’s oil output. The attack has knocked out an estimated 5% of global oil supply and US President Donald Trump on Sunday authorised a release of crude from its Strategic Petroleum Reserve (SPR).

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