UPDATE: Explosion at Saudi Aramco fuel depot in Jeddah attributed to Houthi rebel missile strike

LONDON (ICIS)–Energy giant Saudi Aramco’s facilities in Jeddah, Saudi Arabia have been rocked by an explosion, reportedly as a result of being hit by a Houthi missile on Friday.

The strike was reported at an oil depot just before 18:28 local time (15:28 GMT) with videos on social media showing the blaze, which appears to be at the same facility targeted last weekend.

Officials have halted all flights coming into the port city of Jeddah, which is due to host the Saudi Arabia Grand Prix F1 Race on Sunday 27 March.

In the previous attack, Yemen’s Houthi rebels targeted a liquefied natural gas (LNG) plant, a water desalination plant, oil facility and power station.

The facility is thought to be the North Jeddah Bunker Plant used as a storage and distribution centre for domestic refined products is unlikely to have an immediate impact on crude exports.

ANALYST COMMENTARY
“The attack on the Saudi Aramco oil facility in Jeddah comes at a time when crude and refined supplies are already low due to the loss of substantial Russian crude volumes, but also when oil inventories are already near multi-year lows,” said ICIS Senior Analyst Ajay Parmar.

“Western leaders have called upon Saudi Arabia to raise production volumes in recent weeks, and so if this attack leads to a material reduction in Saudi crude/refined products supplies or inventories, it could severely exacerbate existing tightness in the oil balance.”