Finance experts are expecting to see significant losses for Dow futures in this week's trading following previous losses on Sunday evening after an attack on Saudi Aramco, the world's largest oil production company.
According to CNBC, futures under the Dow Jones Industrial Average are expected to see losses of over 100 points. On Sunday evening, U.S. stock futures already shed 168 points, with Nasdaq 100 and S&P 500 futures leading the way in declines.
If predictions about Monday's decline prove to be true, it would cut short Dow's eight-day winning streak ever since it started climbing back up. It would also attest to concerns about the potential global impact of the Saudi Aramco attacks.
In lieu of the possible downtrend in supply, as Aramco strives to get back into a full-blown production, U.S. President Donald Trump said on Sunday that the Strategic Petroleum Reserve is "well-supplied" to support global demand.
Asian stocks were mixed on Monday morning's trade session as Brent oil prices soared about 10 percent. The Shenzhen composite advanced 0.105 percent while the Shanghai composite slumped by 0.18 percent.
South Korea's Kospi traded 0.35 percent higher, the Australian S&P/ASX 200 did not move for most of the segments, the Hong Kong Exchanges and Clearing shed 2.41 percent, and the Hang Seng index also lost 1.35 percent.
Amid the mixed reaction of Asian markets to the news of Saudi Arabian facilities struck by drones, U.S. crude futures advanced 9.08 percent, Brent crude futures saw a significant spike of 10.11 percent to sit at $59.83 and $66.31 per barrel respectively.
Aramco said it is working to restore a third of its crude production by Monday, allowing for some ease in global markets. Experts at Commonwealth Bank of Australia predicted that the spike of oil prices will not take too long.
Oil prices are largely expected to stabilize since the demand for oil in the global stage isn't as high as the past years. On the other hand, some industry experts believe the impact will last for at least a couple of days or a week.
The drone strikes on Saudi Aramco are reportedly equivalent to 5.7 million barrels in output losses for the global oil market, marking the most shocking and single supply disruption in history.
Insiders with knowledge of the matter said it will take the world's largest oil producer to restore its full production process to the supposed "normal" levels. It remains to be seen if the company, which is scheduled for an IPO sometime between 2019 to 2020, can bounce back in production before this week's trading ends.
