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Saudi Measures Boost Global Market Confidence in Aramco

Saudi Measures Boost Global Market Confidence in Aramco

Monday, 23 September, 2019 - 13:15
Attacks on Aramco caused fires and damage, but the company quickly contained the impacts. (Asharq Al-Awsat)

Saudi measures taken by the capital, Riyadh, over the recent attacks on Abqaiq and Khurais oil facilities have boosted global markets' confidence in Saudi oil giant Aramco and deepened its ability to contain such crises, according to strategic specialists.

Theodore Karasik, a senior advisor to Gulf State Analytics, told Asharq Al-Awsat that Aramco has achieved a number of targets following the Iranian attack on its facilities.

One of these targets, he said, is the timing of oil officials’ reactions from drones and cruise missile strikes.

According to Karasik, Aramco has shown the ability to respond to such a crisis very quickly.

In addition to that, the company was able to release information in a calm and reassuring way for investors and observers to see.

“Thus, Aramco's crisis management was very effective and demonstrated the strength of the company in the wake of the attacks,” he noted.

The company was also keen to reach all its customers in order to keep them informed of any changes in the delivery number.

“These are the actions taken by an international company with a high degree of incentive creation as it progresses to the IPO.”

“I do not rule out some tension in global energy markets due to the recent attack on two Aramco facilities, but I expect it to be a short-term tension with limited impact,” said Russian strategic Analyst Andrei Ontykov in a phone call with Asharq Al-Awsat.

He was optimistic about the positive statements by a number of Saudi officials, noting that they stressed that the Kingdom will exert every effort to bring the production process back to normal and to the levels it was before the attack.

The Russian analyst also pointed out that when Saudi authorities announced the suspension of oil production, they confirmed that this would be temporary regardless of the damage caused by the attack at the facilities.

Saudi Arabia is a pivotal responsible country and a major international player in the international arena at all levels, he stressed, especially in the global oil market.

He believes the Kingdom will find moral support from other world countries, considering that everyone is interested in the stability of global oil prices.

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