LEADING oil and gas industry analysts have agreed that the weekend drone attacks on Saudi Arabia oil fields will have a significant impact on the oil price and the industry.

Saudi Aramco emergency crews contained fires at its plants in Abqaiq and Khurais, as a result of terrorist attacks with projectiles. These attacks resulted in production suspension of 5.7 million barrels of crude oil per day.

“We are gratified that there were no injuries. I would like to thank all teams that responded timely to the incidents and brought the situation under control. Work is underway to restore production and a progress update will be provided in around 48 hours,” Amin H. Nasser, Saudi Aramco president and CEO, said after visiting the incident locations.

Wood Mackenzie VP for Refining, Chemicals an Oil Markets, Alan Gelder, said the attack has material implications for the oil market, as a loss of five million barrels per day of supplies from Saudi Arabia cannot be met for long by existing inventories and the limited spare capacity of the other OPEC+ group members.

“A geopolitical risk premium will return to the oil price,” Mr Gelder said.

The attack was the sixth in over four months on a Saudi facility or tanker.