Oil prices increase after Saudi Arabia reassures on output

19 September 2019 (Last Updated September 19th, 2019 11:52)

Oil prices edged higher after Saudi Arabia’s confirmation to restore full production by the end of this month at its facilities which were attacked by terrorists.

Oil prices increase after Saudi Arabia reassures on output
WTI futures increased 14 cents to $58.25 a barrel, which is the biggest one-day percentage gain since 1988. Credit: Linda Flores.

Oil prices edged higher after Saudi Arabia’s confirmation to restore full production by the end of September 2019 at its facilities which were attacked by terrorists.

Brent crude futures LCOc1 rose 8 cents to $63.68 per barrel, while US West Texas Intermediate (WTI) crude CLc1 increased 14 cents to $58.25 a barrel, reported Reuters.

Saudi Arabia said that it had managed to restore supplies to customers at levels prior to the drone and missile attacks by drawing oil from its inventories. The world’s leading oil exporter said that the attack on its oil sites was “unquestionably sponsored” by its rival nation Iran.

US President Donald Trump ordered the Treasury to substantially increase sanctions on Tehran. According to Reuters, Iran has denied involvement in the strikes.

CMC Markets chief markets analyst Michael McCarthy was quoted by Reuters as saying: “Prices may have found equilibrium for now.

“While tensions in the Middle East remained elevated, the White House’s response on Wednesday to Saudi producing evidence that it said implicated Iran in the attacks pointed to a more measured approach in handling the region’s issues.”

The International Energy Agency (IEA) head said that there is no need to release emergency oil stocks as markets are receiving significant oil supplies.

Following the drone attacks on oil plants in Saudi Arabia, Kuwait raised its security as a precautionary measure to avoid unexpected attacks, a Kuwaiti oil official said. A separate report of weekly data from the EIA on US crude stocks provided a mixed data.