Dow futures plunged nearly 150 points after a drone attack on Saudi oil infrastructure shocked the global energy market. | Source: AP Photo / Richard Drew
Dow futures pointed to heavy losses at Monday’s opening bell after a devastating drone attack on Saudi oil production infrastructure shocked the global energy market.
Dow Futures Dive Nearly 150 Points
US stock futures careened lower when trading opened on Sunday night. Dow Jones Industrial Average futures fell 134 points or 0.49%, implying losses of 138.52 points in the DJIA.
Saudi Oil Field Attack Will Hurt US Consumers – But Not the Economy
Dow futures recoiled to the news that drone attacks had decimated Saudi Arabian oil production. US Secretary of State Mike Pompeo blames Iran for the attacks, which wiped out 5.7 million barrels of daily production, and Aramco – the Saudi national oil company – is racing to mitigate those losses.
According to the Wall Street Journal, Aramco aims to restore one-third of the lost oil production by Monday. However, it could take weeks to return all 15 damaged production facilities back to full capacity.
Ryan Kellogg, an economist at the University of Chicago, said that the Saudi oil production cuts should have a limited impact on the US economy as a whole since it should be a boon to energy production stateside.
“Ten years ago you’d say unambiguously, if there’s a supply shock in the Persian Gulf,