Oil prices spiked shortly after trading began today, with U.S. crude jumping more than 15% and Brent leaping nearly 20%. But the initial surge moderated on talk of tapping strategic reserves to weather any shortfalls from the loss of 5.7 million barrels of crude processing capacity a day.
U.S. crude had added $4.84 per barrel, or 8.8%, to $59.70 per barrel by mid-afternoon in electronic trading on the New York Mercantile Exchange. Brent picked up $6.02 per barrel, or 10%, to $66.24 per barrel.
Energy prices spike after Saudi attack US blames on Iran
UNDATED (AP) — Global energy prices spiked today after a weekend attack on key oil facilities in Saudi Arabia caused the worst disruption to world supplies on record, an assault for which President Donald Trump warned that the U.S. was “locked and loaded” to respond.
U.S. officials offered satellite images of the damage at the heart of the kingdom’s crucial Abqaiq oil processing plant and a key oil field, alleging the pattern of destruction suggested the attack on Saturday came from either Iraq or Iran — rather than Yemen, as claimed by Iranian-backed Houthi rebels there.
Iran for its part called the U.S. allegations “maximum lies.”
But actions on any side could break into the open a twilight war that’s been raging just below the surface of the wider Persian Gulf in recent months.
Already, there have been mysterious attacks on oil tankers that America blames on Tehran, at least one suspected Israeli strike on Shiite forces in Iraq, and Iran has shot down a U.S. military surveillance drone.
^GENERAL MOTORS-UAW STRIKE
No Deal: Auto workers strike against GM in contract dispute
DETROIT (AP) — More than 49,000 members of the United Auto Workers union have gone on strike as contract talks with General Motors have broken down.
Union members walked out of factories earlier today and set up picket lines at 33 plants across the nation as well as 22 parts warehouses.
UAW Vice President Terry Dittes (DIH’-tehz) says a strike is the union’s last resort because both sides are far apart in bargaining over a new four-year contract, including on issues like health care and fair wages.
But GM says it has made substantial offers, including higher wages and $7 billion worth of factory investments that would create hundreds of new jobs.
Bargaining is scheduled to resume at 10 a.m. EDT today.
Purdue Pharma files for bankruptcy as part of settlement
UNDATED (AP) _ The company that made billions selling the prescription painkiller OxyContin has filed for bankruptcy days after reaching a tentative settlement with many of the state and local governments suing it over the toll of opioids.
The filing Sunday night in White Plains, New York, was anticipated before and after the tentative deal, which could be worth up to $12 billion over time, was struck.
But legal battles still lie ahead for Purdue. About half the states have not signed onto the proposal. Several of them plan to object to the settlement in bankruptcy court and to continue litigation in other courts against members of the Sackler family, which owns the company.
The bankruptcy means that Purdue will likely be removed from the first federal opioid trial, scheduled to start in Cleveland on Oct. 21.