RE:RE:Huge Saudi processing facility struck by Houthis dronesI had read it was a refinery in the first news flash I saw. Other stories are not specific about what is actually being shut down, just calling it "production". If anyone spots better detail, please post.
.
TickerTwit wrote: This is a refinery, and a refinery is on the demand side of the crude-oil market. So, if it shuts down, then demand for crude falls. Therefore I expect the price for crude to fall; however, since it's in the Middle East it's subject to state-controlled dynamics.
I also expect I'll be wrong, as I usually am when I try to predict oil price. In base metals the logic above would hold true (loss of a base-metal refinery ALWAYS means the price paid for concentrate falls). But oil ... I'm not so sure.
.
mnztr wrote:
Prices are gonna spike...