Mubasher: Oil prices soared on Monday, with Brent recording its biggest intra-session gain since more than 28 years, after Saudi Arabia’s oil facilities were attacked on Saturday, which shut more than 5% of global supply, Reuters reported.

Nevertheless, price surges were capped after US President Donald Trump approved the use of the nation’s emergency stockpile to secure stable supply.

By 7:46 am GMT, global benchmark Brent futures surged by 8.68% to $65.45 per barrel (pb), having earlier jumped by as much as 19.5% to $71.95 pb, the sharpest leap during the day since 14 January before the end of the Gulf War in 1991, while US Nymex crude futures climbed by 7.95% to $59.21 pb, after gaining as much as 15.5% to $63.34 pb the largest rise since 22 June 1998.

The attack on Saudi Aramco’s crude processing facilities at Abqaiq and Khurais has subtracted 5.7 million barrels per day (bpd), while the oil giant has not provide a schedule for the resumption of full output.

The return to full oil capacity could take “weeks, not days,” Reuters said, citing a source close to the issue.

“Although global supply will contract in the near term, the US has the ability to supply this contraction,” Sydney-based Frame Funds managing director Hue Frame was quoted by the news agency.

President Trump authorised the release of oil from the US Strategic Petroleum Reserve (SPR), if needed in a quantity to be determined.

In Asia, South Korea said that it would weigh tapping into its strategic oil reserves, should the situations worsen regarding oil imports in the wake of attacks on the Saudi plants.

Saudi Arabia will resume its oil exports normally as it uses its stockpiles from large storage facilities, an industry source told Reuters on Sunday.

However, although the attacks are unlikely to take a heavy toll on Saudi exports, “a re-pricing of supply-side tail risks will likely provide a more sustained boost to oil prices,” Barclays said.