Saudi Arabia’s global oil exports are down by approximately 1.5 million barrels a day following the Sept. 14 attack on its state run oil company, according researchers who track shipping.
The attack on Saudi Aramco is believed to have been carried out by Iran, and had the impact of reducing Saudi production by about 5.7 million barrels per day. The incident has forced Saudi Aramco’s trading arm to purchase crude from neighboring countries in order to fulfil its commitments.
There are concerns that the event could put a squeeze on global oil supplies, despite increased output from the U.S., Brazil and several other countries. Saudi Aramco is working to restore normal operational levels and Saudi officials say they expect to have achieved this by the end of the month.
Commodity intelligence company ClipperData report that Saudi Arabia has seen a significant drop in its exports as a knock-on effect of the attack.
“[Saudi Exports] should be closer to 7 million barrels per day, and we’re seeing it verge on 5.5 million since the attack,” said Matt Smith, director of commodity research at ClipperData. “It does include the 15th when there was just one loading.”
The market that most likely to be impacted by the reduction is Asia, with China and East Asia the biggest buyers of Saudi crude.
The U.S. is reported to be considering sending barrels to cover the shortfall.