Saudi Aramco halts operations at Ras Tanura refinery after drone strike

By Salma El Wardany and Nicholas Lua

 

Aramco halted operations at Saudi Arabia’s largest refinery at Ras Tanura on the Persian Gulf coast after a drone strike in the area, according to people familiar with the matter. 

Gasoil futures jumped on news of the closure of the refinery that’s a key supplier of diesel. Aramco shut the 550,000 barrel-per-day Ras Tanura plant, on Monday as a precaution while assessing damage, the people familiar with developments said, asking not to be named because the information is not yet public. 

 

There was a “limited” fire at the plant, caused by debris from the interception of two drones that were targeting the facility, the official Saudi Press Agency said. The blaze was under control, the people familiar with the developments said. Aramco’s media office did not have an immediate comment. 

 

ICE gasoil futures surged more than 20 per cent, the biggest intraday gain since March 2022, while crude oil in London was trading about 10 per cent higher near $80 a barrel. 

 

Hostilities in the Middle East started over the weekend with the US and Israel attacking Iran and Tehran firing hundreds of missiles and drones at countries around the region in retaliation. An attack on major energy infrastructure is a nightmare scenario for oil markets with maritime traffic through the crucial Strait of Hormuz already all but halting as tensions escalate.  The Ras Tanura refinery is a key supplier of transport fuels like diesel for buyers in Europe and produces smaller quantities of gasoline. Nearby is Aramco’s biggest export terminal for crude and oil products, including storage tanks, berths at the port and offshore loading points.