Oil prices plunge after report of quick Saudi production return after attacks
- Ben Geman, author ofAxios Generate
A Saudi Aramco production facility near al-Khurj. Photo: Fayez Nureldine/AFP/Getty Images
Crude oil prices fell sharply Tuesday, reversing some of their major increases over recent days, after Reuters reported that Saudi Arabia will quickly restore output lost during attacks on its facilities over the weekend.
Why it matters: The report, if borne out, will ease fears of a prolonged outage from the strikes against a massive processing facility and oil field in OPEC's largest producer and the world's largest crude oil exporter.
- Where it stands: Reuters says that the kingdom is "close to restoring 70% of the 5.7 million barrels per day (bpd) production lost following the attacks," citing a "top Saudi source." The same source expects full restoration in 2-3 weeks.
By the numbers: The global benchmark Brent crude quickly fell after the report and is now down $4 to $63.65 per barrel, a 6% slide, via OilPrice.com. West Texas Intermediate, the key U.S. contract, similarly slid by several dollars and is back under $60 per barrel.
What's next: Saudi Energy Minister Prince Abdulaziz bin Salman is scheduled to give a press conference around 1:15 pm ET.