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September 18, 2019

Oil prices slip as Saudi plans to restore production after attacks

Oil prices have declined after Saudi Aramco announced that production would be completely restored by the end of this month.

Oil prices have declined after Saudi Aramco announced that production would be completely restored by the end of this month.

Brent crude oil futures fell 15 cents to $64.40 a barrel while US Crude Oil West Texas Intermediate (WTI) futures reduced by 0.6% to $58.99 a barrel, reported Reuters.

Saudi Aramco president and CEO Amin Nasser said that the company is planning to restore production capacity on its plants at Abqaiq and Khurais following terrorist attacks.

Nasser said: “Not a single shipment to an international customer has been or will be missed or cancelled as a result of these attacks.”

The company noted that deliveries and shipments to customers were adjusted by drawing on inventories and offering additional crude production from other fields.

OANDA New York senior market analyst Edward Moya said: “The risk of further escalation of conflict in the Middle East remains over the energy market and wild swings will likely resume when we see tit-for-tat responses from a Saudi-US led coordinated effort.

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“The situation with the oil market will remain tense, but the initial fears of a sustained disruption with world oil supplies have been alleviated in the very short-term.”

But tension in the Middle East remained high after the US said that the attacks are expected to be originated in Iran, which denied its involvement.

Saudi Arabia Energy Minister Prince Abdulaziz bin Salman said that average oil production this month and the next would be 9.89 million barrels a day.

Saudi Aramco has informed some Asian refiners that it will supply full allocated volumes of crude oil next month, albeit with some changes.

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