LONDON: Oil prices retreated on Wednesday, extending the previous day’s decline after Saudi Arabia said it would quickly restore full production following last weekend’s attacks on its facilities.
Brent crude oil futures were down 77 cents, or 1.21 per cent, at $63.78 a barrel by 1241 GMT. US West Texas Intermediate (WTI) crude futures were down 92 cents, or 1.55 per cent, at $58.42.
Oil prices tumbled 6 per cent on Tuesday after the Saudi energy minister said the kingdom had restored oil supplies to customers at their level before the attacks by drawing from its inventories. Saturday’s attacks effectively shut 5 per cent of global oil output.
“As much as the Saudis have downplayed the extent of the latest outages, we should not be lulled into a false sense of security,” said Stephen Brennock, of London-based oil brokerage PVM. “Tensions in the region are still running high and the spectre of a further escalation is hanging over the oil market.”
Energy Minister Prince Abdulaziz bin Salman had said on Tuesday that Saudi Arabia’s average oil production in September and October would be 9.89 million barrels per day (bpd) and that this month’s oil supply commitments to customers would be met fully.
Production capacity would reach 11 million bpd by the end of September and 12 million bpd by the end of November, the kingdom’s production capacity before the attacks, he said. — Reuters
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