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Al-Qaeda claims responsibility for attack on Saudi oil complex

Atul Aneja

Analysts say the timing of the attack was calibrated for maximum impact on prices

DUBAI: The Al-Qaeda network has claimed responsibility for Friday's foiled attack on the Abqaiq refinery complex, the world's largest, in Saudi Arabia.

Saudi security forces had foiled the attack more than a kilometre away from the core of the Abqaiq complex, through which nearly 10 per cent of the global oil supply is released. Nevertheless, there has been a spurt in oil prices that jumped by nearly three dollars a barrel to $62.91,during electronic trading at the New York mercantile exchange.

In a statement posted on the internet, Al-Qaeda said that two persons had targeted the facility and the purpose of the attack was "to rid the Arabian Peninsula of the infidels."

Energy analyst, A.F. Alhajji, based in Ohio, told The Hindu that the timing of the attack had been carefully calibrated for maximum impact on prices, because it raised on-going concerns on global oil supply to a new level. "Traders were already nervous on account of turmoil in Nigeria and the possibility of increased tension with Iran," he said.

Reduction in supply

At the time of the attack, the flow of oil from Nigeria, the eighth largest oil producer in the world had dropped by 455,000 barrels per day, a 20 per cent decline in output. There was also a threat of sharp reduction in Iranian oil in the global supply chain, in case sanctions were imposed on Teheran on account of its controversial nuclear programme, after the International Atomic Energy Agency (IAEA) board meets in Vienna on March 6. Besides, the attack took place on Friday, a weekly holiday in Saudi Arabia, because of which Saudi authorities found it difficult to mobilise the international media in order to effectively demonstrate with visual impact that supplies had not been disrupted.

Markets in the U.S. were also closing for the weekend, and were thus unable to respond to the initial shock of the event, which led to a sharp escalation in prices.

Analysts, however, point out that psychological impact of the attack would last for some time, but the ability of the Saudi security forces to counter the attack would also weigh in, preventing prices from going upwards in an uncontrolled spiral.

The attack at Abqaiq was the first after Al-Qaeda chief Osama bin Laden had given a call in December 2004 for attacking oil installations in the Persian Gulf countries.

Some observers see the strike as serving a reminder to the Saudi Arabian authorities that the Al- Qaeda was still active, despite a stringent clampdown on the organisation by the security forces for the last three years. Youssef Ibrahim of the Dubai based Strategic Energy Investment Group told the Associated Press that Friday's attack illustrated the seepage into Saudi Arabia of tactics adopted by Al-Qaeda in neighbouring Iraq.

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