The terrorist attack on the oil facilities owned by energy producer Saudi Aramco, resulted in a production suspension of 5.7 million barrels of crude oil per day. Fears of further attacks could lead to a shortage of oil in the global system. The price of Brent oil has risen from around $60 per barrel to $64 per barrel. The rise in the oil price will be a drag on business and will exasperate the global economic slowdown; however, to help relieve the shortage Donald Trump has released US oil reserves. Saudi Arabia can supply customers out of inventories, which will last about 28 days.
The oil price is unlikely to rise too high and lead to a full-scale recession, for the simple reason a higher oil price will lead to an increase in US fracking production. The growth in oil alternatives, such as solar power and electric cars, is also diminishing the importance of oil.