GLOBAL MARKETS-Oil soars after attack on Saudi facilities, stocks dip

* Brent rallies on fears of global supply disruption
* Treasury yields fall as soaring oil adds to global growth
fears
* Stocks slip, safe-haven gold rallies

(Updates prices, market activity, comments to close of U.S.
markets)
By Saqib Iqbal Ahmed
NEW YORK, Sept 16 (Reuters) - Oil prices soared on Monday
after attacks on crude facilities in Saudi Arabia cut the
kingdom's production in half and sparked worries over the impact
of an oil shock on economic growth, halting a positive run in
world stock markets as investors reached for less-risky assets.
Increased demand for safe-haven U.S. debt pushed Treasury
yields lower and the price of gold rose.
The attack on Saudi Arabia shut down 5% of global crude
output. U.S. officials blamed Iran and President Donald Trump
said Washington was "locked and loaded" to retaliate.
Oil prices surged nearly 20% at one point on Monday, with
Brent crude posting its biggest intraday gain since the
1990-1991 Gulf crisis, before paring gains.
Trump approved the use of U.S. emergency oil reserves to
ensure stable supply, helping steady prices some.
"The attack on Saudi oil infrastructure came as a shock and
a surprise to a market that had not been trading volatility and
was more focused on the demand aspect over supply," said Tony
Headrick, an energy market analyst at St. Paul, Minnesota
commodity brokerage CHS Hedging LLC. Brent crude LCOc1 futures settled at $69.02 a barrel, up
$8.80, or 14.6%, its largest on-day gain since at least 1988.
WTI crude CLc1 futures settled at $62.90 a barrel, up $8.05,
or 14.7%, the largest on-day percentage gain since Dec 2008.
Saudi Arabia officials were discussing delaying Aramco's
initial public offering, the Wall Street Journal reported on
Monday, citing people familiar with the matter. The upheaval in the oil market, coupled with poor economic
data from China, served to sour investors' appetite for risky
assets. The MSCI world equity index .MIWD00000PUS , which tracks
shares in 47 countries, snapped a five-day winning streak to
trade down 0.39%.
On Wall Street, energy stocks spiked while the rest of the
market fell as the attacks on Saudi Arabia's oil facilities
added to investors' concerns about geopolitical risk and a
slowing global economy.
"The U.S. investor is waiting with bated breath about what
the U.S. and its allies might do," said Jake Dollarhide, chief
executive officer of Longbow Asset Management in Tulsa,
Oklahoma.
Higher oil prices boosted beaten-down energy stocks, with
S&P 500 energy .SPNY , one of the worst performing sectors so
far this year, rising 3.29%.
Monday's rapid spike in crude prices came at a time when
central banks in the United States, Europe and Asia are easing
monetary policy to fight a slowdown in the global economy amid a
drawn-out trade war between Washington and Beijing.
The U.S. Federal Reserve is due to hold its next policy
meeting on Wednesday, at which it is widely expected to ease
interest rates and signal its future policy path. FEDWATCH
The Dow Jones Industrial Average .DJI fell 142.7 points,
or 0.52%, to close at 27,076.82, the S&P 500 .SPX lost 9.43
points, or 0.31%, to end at 2,997.96 and the Nasdaq Composite
.IXIC dropped 23.17 points, or 0.28%, to finish at 8,153.54.
The pan-European STOXX 600 index .STOXX finished down
0.58%.
U.S. Treasury yields slipped, with benchmark 10-year notes
US10YT=RR up 15/32 in price to yield 1.845%.
In FX markets, the dollar rose against a basket of
currencies after President Donald Trump's authorization of the
use of an emergency crude stockpile helped temper the surge in
oil prices. The dollar index .DXY was up 0.41% at 98.658.
Gold rose after the attack on oil facilities in Saudi Arabia
inflamed worries over the stability of the Middle East, boosting
demand for assets seen as a haven from risk. Spot gold XAU=
was up 0.63% at $1,497.8 per ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates in 2019: http://tmsnrt.rs/2egbfVh
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>