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Attack on Saudi Oil Facility Seen as Short-Term Disruption
(New York Times) Clifford Krauss - The attack on one of Saudi Arabia's most important oil facilities could cripple a portion of Saudi petroleum exports for days or even weeks, but experts say that a severe shock to energy markets and the world economy is unlikely. As luck would have it, the attack came as global oil stockpiles were higher than usual and several producing countries have ample spare capacity. Meanwhile, a slowing global economy has moderated energy demand. The average price for a gallon of gas in the U.S. on Sunday was 28 cents below a year ago. Manish Raj, chief financial officer of Velandera Energy Partners, said, "The Saudis themselves have enough storage to meet their export obligation for the next 60 days. Therefore, we expect no supply-demand imbalance in the near term."