Saudi Arabia Issues Warning on Global Oil Supplies

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia, on May 21, 2018. (Ahmed Jadallah/Reuters)

Saudi Arabia said on Monday that it claims no responsibility for a shortage in global oil supplies after an alleged attack by Yemeni rebels impacted production in the kingdom.

A statement from Saudi Arabia’s government said “that it will not bear any responsibility for any shortage in oil supplies to global markets in light of the attacks on its oil facilities from Iranian-backed terrorist Houthi militias,” according to the state-run Saudi Press Agency.

The kingdom further blamed Iran for allegedly equipping the Houthi militants “with the technology of the ballistic missiles” and drones that target Saudi oil refineries, “resulting in serious consequences for upstream and downstream sectors affecting” its oil exports.

“The international community must assume its responsibility to preserve energy supplies,” the Saudi statement further said, without elaborating.

Iran-backed Houthi militants seized Yemen’s capital, Sanaa, in 2014 following several years of unrest triggered after the country’s Arab Spring-linked protests against longtime Yemeni leader Ali Abdullah Saleh. Saudi Arabia and its allies responded to the Yemeni war by launching an air campaign to dislodge the Houthis, who have launched missiles and drone attacks on Saudi oil production sites in recent years.

The announcement comes as Saudi Arabia’s leadership remains in lockstep with OPEC and other oil-producing countries in a deal limiting production increases. Gulf Arab oil producers have so far resisted pressure from the Biden administration to pump more crude to help bring down oil prices that have soared amid Russia’s war on Ukraine.

The Houthis claimed responsibility for a sophisticated attack in September 2019, which the United States and Riyadh later blamed on Iran. Even after shrapnel blasted through the critical Abqaiq oil processing facility, Saudi Arabia delivered no such similar warning about its responsibility for global oil supplies and swinging prices. Instead, the kingdom stressed it would speedily return to normal levels of production.

As of Monday afternoon, gas prices in the United States remained at near historically high levels, according to data published by automotive group AAA. The average price for a gallon nationwide stands at around $4.25.

Saudi state-run media alleged that Houthi militants attacked the Aramco plant in Jeddah, resulting in no casualties. The overall extent of damage at the installations remained unclear. The Saudi Energy Ministry acknowledged a temporary drop in oil output at the 400,000-barrel-a-day Yanbu site, without elaborating.

Jake Sullivan, President Joe Biden’s national security adviser, condemned the attacks in a statement Sunday.

“The Houthis launch these terrorist attacks with enabling by Iran, which supplies them with missile and UAV components, training, and expertise,” Sullivan said, referring to unmanned aerial vehicles, also known as drones.

The Associated Press contributed to this report.