What does Ansarullah's attack on Saudi oil facilities mean?

Yemen’s Houthi Ansarullah launched a major drone and missile strike at the heart of the Saudi oil industry in Dhahran and Ras Tanura on Sunday.

Ras Tanura on the east coast of Saudi Arabia is the site of a huge refinery and the world’s biggest oil export terminal.

According to Houthi spokesman Yahya Sarie, 14 drones and 8 ballistic missiles were deployed in the operation which also targeted Saudi Aramco facilities in Jazan, Asir and Dammam. 

This amounts to a concerted assault on the oil industry that Saudi Arabia’s economy relies on, aimed at inflicting as much material and moral damage as possible on the country’s government.

As a result, oil prices rose to over $70 per barrel for the first time in two years, reflecting market fears about Saudi Arabia’s ability to continue exporting crude at current levels.

And the US embassy warned its nationals in Saudi Arabia – around 6,000 of whom reside in the oil producing Eastern Province where Saudi Aramco is based—to take precautions and avoid travelling due to the risk of further missile and drone attacks.

This happened just ahead of the sixth anniversary of the start of the Saudi-led war on Yemen, which has failed dismally to achieve its aim of defeating the Houthis, forcing them to surrender control of the capital Sanaa, and restoring the internationally recognised government of Abed-Rabbo Mansour Hadi.

These attacks on major oil refineries are sending a message that the Saudi oil exports are no longer safe and are more vulnerable to threats.

The attack on the oil refinery in the heart of the Saudi capital is a major psychological blow to the Saudi leadership, which is responsible for providing security to its citizens.

The attack on Saudi Aramco facilities in Jazan, Asir and Dammam has greatly reduced company's trade value at a time when Saudi Arabia desperately needs the value of its shares to make up for its huge budget deficit.  

Meanwhile, the world is questioning that Saudi Arabia - a country that ranks third in terms of total defense spending ... was not able to defend its most critical oil facility from these kinds of attacks.

Houthi missiles and drones now pose a strategic threat to the Saudi oil industry. American-made Patriot missile defence systems failed to prevent them from hitting the kingdom’s most important oil installations.