Ryad (AFP)

The Saudi Arabian Stock Exchange fell on Sunday, the day after a drone attack on two strategic oil facilities that resulted in a halving of the country's crude oil production, the world's largest exporter.

First financial center of the Arab world, the Ryad Stock Exchange lost about 3% (200 points) at the opening, before recovering slightly. An hour later, the Tadawul All-Shares index fell 1.5% to 7.715 points.

At the outset, the energy sector plunged 4.7% and the banking and telecommunications sectors each lost 3%.

Markets are also affected by the announcement of Sabic (Saudi Basic Industries Corporation) petrochemical giant about a shortage of commodities.

The company did not specify the causes of the shortage, but said the problem had emerged on Saturday, when a drone attack claimed by Yemeni Houthi rebels sparked fires at two Aramco oil facilities in Saudi Arabia. Abqaiq and Khurais.

"Part of the decline (in production) will be compensated for the customers by the stocks," said the Saudi Minister of Energy, Prince Abdel Aziz ben Salman, in a statement relayed by the official agency SPA.

Five underground storage sites, which can hold tens of millions of barrels of various refined petroleum products, were built in several parts of the kingdom for emergency extraction.

The minister said that the explosions due to the attacks also caused the interruption of production of about two billion cubic feet (56.6 million cubic meters) of associated gas, extracted with the crude.

"As a result, the supply of ethane and liquefied natural gas will fall by 50%," said the minister, adding that the domestic supply of fuel, electricity and water has not been affected.

Aramco CEO Amin Nasser said the job was "under way to regain lost production".

Saturday's drone attack is the third such attack in five months against oil mastodon infrastructure. It comes as Aramco prepares its IPO that is to take place "soon", according to its CEO.

The Houthis, who routinely call for drones or missiles against targets in Saudi Arabia, say they are responding in response to airstrikes by the military coalition led by Ryad, which has been intervening since 2015 in the war in Yemen in support of power against rebels.

The conflict in Yemen has caused the worst humanitarian crisis in the world according to the UN.

© 2019 AFP