Oil Inches Higher as Iran Strikes Kuwait’s Mina Al-Ahmadi Refinery

Kuwait’s Mina Al-Ahmadi refinery was hit by Iranian drones early on Friday in attacks that caused a fire in several units at the facility, as the war in the Middle East shows no signs of de-escalation despite the most recent U.S. and Israeli rhetoric.     

The refinery, which is located 50 kilometers (31 miles) south of Kuwait City and has the capacity to process 346,000 barrels per day (bpd) of crude oil, came under drone attacks in the early hours of Friday, Kuwait Petroleum Corporation (KPC) said in a statement carried by the official Kuwait News Agency (KUNA).  

“The attacks resulted in a fire in several units within the refinery but caused no injuries, according to preliminary assessments,” KPC said. 

Separately, Kuwait’s General Fire Force said its teams are dealing with a fire that broke out in one of the units at Mina Al-Ahmadi Refinery following drone attacks. 

In addition, the Kuwaiti Armed Forces confirmed that “it is currently responding to hostile missiles & drone threats, urging the public to adhere to safety & security instructions issued by the relevant authorities.”

Related: Six Stocks That Could Soar in an Era of Regional Instability

Friday’s attacks at Kuwait and its energy infrastructure follow previous strikes from Thursday on assets on Kuwaiti and Saudi energy infrastructure. 

Meanwhile, Ali Mohammad Naini, spokesperson for Iran’s Islamic Revolutionary Guard Corps, was killed in U.S.-Israeli air strikes at dawn on Friday, according to state media reports.

The war continues despite assurances from Israel that it would not hit again Iran’s huge gas field South Pars. Israel was scolded by U.S. President Donald Trump for the decision to strike the gas infrastructure in Iran. 

Early on Friday in Asian trade, oil prices dipped by more than 3% after Israeli Prime Minister Benjamin Netanyahu suggested the Iran war could end sooner than expected.  

However, by mid-morning in Europe, Brent Crude prices had reversed course and were gaining 1% to trade at $110 per barrel as the war rages on and energy infrastructure in the Gulf continues to sustain damages. 

By Charles Kennedy for Oilprice.com

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