Following on "Saudi Arabia’s Ras Tanura Refinery Halts After Drone Attack".
From MarketWatch, March 2:
Gasoil is spiking more than crude. What it is and why prices are soaring amid Iran conflict.
A reported strike on a Saudi Aramco refinery triggered a sharp price hike
While the world kept close watch on climbing crude-oil prices on Monday, the so-called workhorse fuel of the industrial world was seeing a far more dramatic response as the Iran conflict reaches its third day.
On a continuous-contract basis, gasoil futures soared 15% on the International Exchange to $869 per metric ton. Heating-oil futures jumped 11%, Brent crude was up 7% to over $78 a barrel and West Texas Intermediate crude rose over 6% to $71 a barrel.
Gasoil is a crude-oil derivative, commonly known as diesel oil, used for agricultural machinery, ships and railways, making it a crucial industrial fuel. Prices at one point early Monday had shot up more than 21% amid reports that one of Saudi Aramco’s biggest refineries, Ras Tanura, was hit by a drone strike, forcing its closure.
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The Saudi Energy Ministry acknowledged limited damage at the Ras Tanura refinery, saying debris from two drone strikes had struck it, causing a limited fire that was contained. But the strike clearly rattled the energy market, as prices for oil and diesel fuel surged on those headlines....
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