Saudi Arabia professionally responded to Abqaiq–Khurais attack, inwhich missiles and drones were used, said Dr. Philip Verleiger, a leadingeconomist in the energy markets.
In an editorial for Energy Intelligence, Verleger praised the waySaudi Arabia responded to the attack and said it acted in a way that dispelledfears.
Verliger, an adviser to the International Atomic Energy Agency(IAEA), compared Saudi Arabia's response to the attack and the crisismanagement measures of central banks, saying Saudi Arabia had perfectly actedafter the attacks and proved to be truly a "reliable supplier".
Verliger noted that customer orders had been met and that thequantities of oil that were supposed to go to Saudi refineries had beenredirected to consumers.
"As a result, fears quickly dissipated, risk premiums fell ratherthan rising, and prices fell after initially rising in the first crisis," Verligersaid.
"One can hope that the IEA and other oil-consuming countries willunderstand the lesson provided by Saudi officials," Verliger said.
Oil crisis management changed with the September attack on Saudioil facilities. The scenario was that energy policy officials around the worldwould reassure consumers that markets were "well equipped," while allowingprices to rise.
But this time it was different, the government of Saudi Arabiaintervened where IEA officials never had a role, despite their apparent role inprotecting consumers, and Saudi Arabia adopted the crisis management measuresof central bankers in times of monetary pressure. Consumers' demands were met,prices were not allowed to rise, and Saudi Arabia became the central bank foroil.
The oil market lacks such a central bank, whose role could beplayed by the United States if it wants to offer crude oil for sale at thefirst sign of panic. European governments that have stocks can do that too.However, despite many opportunities, neither the United States, the IEA, northe governments of Europe or Japan have played this role. In past crises,prices and risk premiums have been allowed to rise unhindered.
Verliger pointed out that the lesson learned from the past turmoilis that "companies are looking first for themselves and profits, and herehighlights the recent actions of the Saudis, where crude oil prices jumpedseven dollars a barrel on September 16, amid reports of serious damage to majorfacilities in Saudi Arabia, and by September 30, Brent prices almost returnedto the levels of September 13, on Friday before the attack, and prices for WTIcrude were $4 less per barrel than on September 13, and prices fell becauseSaudi Arabia followed the ideal prescription: "it supplied oil to its customers".
