Sep 17, 2019

Saudi Arabia says oil output to be restored by month's end

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.

Go deeper: Fallout from Saudi Arabia strikes is everywhere

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Oil prices plunge after report of quick Saudi production return after attacks

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.

Go deeperArrowSep 17, 2019

BP CEO: "Remarkable" that prices stabilized so fast after Saudi oil attack

Smoke billows from an Aramco oil facility, Sept. 14. Photo: AFP/Getty Images

Following the Sept. 14 attacks on Saudi Arabia's oil facilities, BP CEO Bob Dudley said he found it a "remarkable thing that the oil market settled down so quickly."

Why it matters: His comments, made to Axios in an interview Monday in New York, are the latest sign of how much has changed in the global oil industry over the last few years partly as a result of America's booming oil production.

Go deeperArrowSep 24, 2019

The fading Saudi oil freakout

Data: FactSet; Chart: Axios Visuals

Remember the Jurassic era of oil markets in, uh, mid-September, when aerial attacks left the Saudis reeling and talk of big geopolitical risk premium was all the rage? Things look rather different now.

Driving the news: Both Brent and WTI prices have come down a lot since soaring after the attacks that initially knocked 5.7 million barrels per day of Saudi production offline. The chart above captures WTI's moves.

Go deeperArrowSep 26, 2019