Would likely go up appreciably. 10 plus large drones were flown into Saudi Arabia, undetected, and took out a significant oil depot. These oil installations are located in areas with large Shiite population centers. They have exposed major vulnerabilities to the oil supply chain in Saudi Arabia. The market will react to that with rising oil prices. I would expect further drone strikes. No one seems to know for sure where the strikes even came from. Latest intel suggests it may have originated in southern Iraq.

I think price spikes will be because increased risk is now being priced in rather than a supply shortage.

Elizabeth Warren, Sanders, and Harris have said they would ban fracking nationwide as well as offshore drilling. Can you imagine the cost of gas and jetA if that happens?

That being said we really can't transition to electric ground transportation quick enough. That would do wonders for the economy, keeping all that energy production money inside the US as well as helping the consumer smooth out their monthly budgeting. We have never had a modern day recession unless it was preceded by a spike in gas prices.

Also, more gas/jet-a/diesel for the military, training, etc.

Agree with all of this. First sentence is especially spot on regarding price now having to reflect the increased risk (rather than solely supply). Correct regarding price spikes being a harbinger of recessions. I think 8 or 9 of all previous recessions were preceded by sharp oil price spikes. Seems to jive with forecasts calling for recession around 2021 timeframe.

Did anyone see the "Oil execs" that night?????

Wait....didin't you watch the Global warming/climate change debate????

During hour 5 of 7, Ms Warren said the Oil Executives are evil and should be "locked up" (but Biden said no jail for non-violent crime a few days later).

So Maybe the Houthis weren't involved, with oil prices so low for so long, and execs would love a little rise in price....it makes natural sense that the "evil oil execs" are most likely behind this attack!

I think there was a Bond movie about that. Except the commodity was information and a news was exec creating world crisis for the profit of his company.

A few quotes from CNBC this morning:

Crude oil had "it's biggest intraday jump on record." Brent crude is currently up ~11% to $~66/barrel.

How high the price of oil will settle depends on how long the outage takes place. "Goldman Sachs said an extended oil outage could push Brent crude prices north of $75/barrel."

CNBC also says Aramco should have 2M of the initial 5.7M BPD production loss back online today.

But still making more money than the 737 Max

Correct. That news from Sunday was digested by the market before the open today. That’s the reason the price of oil only went up ~15% today. It would have been higher if that was not the case.