The United States earlier last week made a statement that it will dominate the energy market no matter what happens to the oil prices after there was a rising concern seen in the petroleum producing and supplying nations.
With this statement, last week followed a drone strike on the eastern oil-producing and extracting province of Saudi Arabia which resulted in a shutdown of almost all operations in the region. This closure is believed to impact the global market on a very large scale. With the US not showing any concern for the oil market and claiming to the domination of the market no matter what has made people question the drone strikes. The drones attacked Hijra Khurais, one of Saudi Arabia’s largest oil fields, and Abqaiq, the world’s biggest crude stabilization facility. This has impacted the global oil markets substantially and is adding to the oil crisis that the world is facing in the past couple of years. The United States stated that Iran was responsible for these drone strikes in Saudi Arabia. Yemen’s Houthi rebels have claimed responsibility for the attacks, which reportedly created a huge fire at a processor essential to global energy supplies. The United States has denied all the allegations that the airstrike by the drones was not carried out by the nation and they had no part in this attack. The Saudi administration has greatly condemned this terrorist act and is now investigating further to identify the Institutions involved in the matter.
With all these recent events the financial markets are also to be affected when the markets open today. This new development could cost the United States market billion in trading and investments even though the allegations that it has garnered. This will have an adverse impact on the energy sector of the United States.