IATA: Saudi Arabian attack expected to put oil prices under pressure for some time

IATA reported (19-Sep-2019) that while the loss of oil production due to the attack on Saudi Arabia's refining capabilities could be partly compensated from storage facilities, oil prices are expected to remain under pressure as it is likely to take some time for production to return to normal. The impact of the rise in oil prices on airlines will depend on hedging ratios, but each USD5 per barrel increase in the price of jet fuel could reduce overall industry net profit margins by around 0.5% points. Oil prices were stable in Aug-2019, but jumped up in Sep-2019 following the attack. According to IATA, Brent crude oil was USD68 per barrel and jet fuel reached USD85 per barrel, 11% higher compared to the end of Aug-2019. [more - original PR]