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  • Price of crude oil spikes after attacks on Saudi facilities

  • Energy-related stocks higher

  • Federal Reserve Open Market Committee tops the week’s economic items

September 16, 2019

Shifting Tides

As this week began, the focus turned to the Middle East and the attack on Saudi oil processing facilities. Drone attacks shut down 5.7 million barrels of production. This shoved the price of West Texas Intermediate (WTI) crude up more than 10% to as high as $62.74 a barrel before slipping back below $60 a barrel. The White House indicated its willingness to open the Strategic Petroleum Reserve to keep a lid on oil and related product prices. Oil-related stocks moved quickly higher while major oil users like airlines were lower. Ten minutes into trading, the Dow Jones Industrial Average (DJIA) was down more than 100 points but Exxon Mobil (XOM) and Chevron (CVX) together added 30 points to the DJIA. In addition to the impact of higher oil prices, the accusation from the White House that Iran was behind the attacks increased geopolitical tension.