Saudi Arabia says oil output to be restored by month's end
- Ben Geman, author of Axios Generate
Saudi Energy Minister Prince Abdulaziz bin Salman. Photo: -/AFP/Getty Images
Saudi Arabia hopes to fully restore oil output curtailed by Saturday's attacks by the end of September and have already revived 50% of the lost production, the kingdom's energy minister said Tuesday, per multiple reports.
Why it matters: The comments by Prince Abdulaziz bin Salman — and an earlier Reuters report of the rough timeline — are putting downward pressure on oil prices, which had soared in the wake of the attacks against a major processing plant and oilfield.
Where it stands: The attacks cut production from the kingdom — the world's largest crude oil exporter — by 5.7 million barrels per day.
- Per the Associated Press's summary of the minister's press conference Tuesday, he said production capacity will be up to 11 million barrels per day by the end of September.
- Oil prices have fallen by several dollars per barrel today, though they remain above pre-attack levels.
- Per OilPrice.com, the global benchmark Brent crude dropped by well over 6% Tuesday and is currently trading at $63.22 per barrel. West Texas Intermediate, the main U.S. contract, has also fallen sharply.
The big picture: The aerial strikes have roiled markets and led President Trump to signal that he's considering retaliation against Iran, whom Secretary of State Mike Pompeo has blamed for the attacks.
What they're saying: "The oil market has gone from pricing in the worst-case scenario, in terms of lost Saudi oil supplies, to one of the best case scenarios, considering the scope and scale of the attack,” oil analyst John Kilduff of Again Capital tells The Washington Post.