The Ras Tanura refinery in Saudi Arabia has sustained serious damage following a missile attack by the armed forces of Yemen on October 27, 2023 (Aban 5, 1405), and reports indicate that its operations will be suspended for at least 15 days. This incident could increase pressure on Saudi Arabia's refining capacity and pose serious challenges to the country's petroleum product supply equations.
Details of the Attack and Damage to the Refinery
According to available information, the attack has damaged one of the main crude oil processing units at the Ras Tanura refinery, disrupting the operation of Saudi Arabia's oil refining industry. This industry has faced challenges in recent months due to attacks on the energy infrastructure of the country. Reports indicate that following this attack, the refinery's operations have been suspended, and one source has stated that this halt will last for at least 15 days.
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Impacts on Oil Exports and Global Market
Despite the damage to the refining units, it appears that crude oil loading operations at the Ras Tanura export terminal, located adjacent to the refinery, have not been affected by this incident. Thus, crude oil exports from this terminal will continue, while disruptions in the refining sector may limit the production of petroleum products. Satellite images captured on October 28 also indicate a fire and damage to the facilities.
The damage to the Ras Tanura refining units may compel Saudi Arabia to allocate some of the crude oil previously designated for the refinery's feedstock to export markets. This situation could have serious implications for global oil prices. Following the attack on the refinery, Brent crude prices rose by about one percent the next day, reaching $115.32 per barrel. This price increase is due to concerns about global supply security and its impacts on fuel prices in Saudi Arabia and global markets.
The Ras Tanura refinery, with a daily refining capacity of 550,000 barrels of crude oil and condensates, is considered one of the most important strategic assets of Saudi Aramco and plays a key role in supplying petroleum products for Saudi Arabia. In addition to producing gasoline and diesel, it also produces jet fuel and fuel oil. As damage to this refinery has led to more challenges for Saudi Arabia's energy supply, the name of this refinery has once again appeared on the list of targets for Yemeni forces.
Overall, recent attacks on Saudi Arabia's oil facilities have not only raised concerns about global supply security but have also put pressure on the petroleum product market. Given these developments, it is expected that fuel prices in Saudi Arabia and global markets will increase due to potential disruptions in the supply chain.
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