Oil output to be restored within 14 days, says Saudi Arabia

Saudi Arabian prince Abdulaziz said that by the end of September, the kingdom would achieve 11 million barrels per day (bpd) and reach 12 million bpd by the end of November.

Saudi Arabia will be returning its oil output to normal levels by the end of this month as it recalibrates from the damage made by the drone strikes on its Saudi Aramco oil processing facility on Saturday which wiped out around 5% of global oil supply.

‘During the past two days the damage was contained and 50% of the production has been recovered,’ Saudi Arabia’s energy minister prince Abdulaziz bin Salman told reporters in an AFP report. ‘Production will be back to normal by the end of September,’ he added.

Prince Abdulaziz said that by the end of September, the kingdom would achieve 11 million barrels per day (bpd) and reach 12 million bpd by the end of November.

The kingdom is the world's biggest oil exporter, shipping more than seven million barrels daily.

Oil markets were frenetic following the oil output attack which occurred on Saturday. Brent crude oil futures jumped close to US$12 per barrel to hit US$71.95 on Monday. As of 6.42am GMT on Wednesday, Brent oil cooled to US$64.26 per barrel, IG data showed.

United States’ (US) West Texas Intermediate (WTI) which shot up 15% to US$63.34 on Monday, meanwhile, eased to US$59.16 per barrel by Wednesday.

Plans for Aramco’s initial public offering (IPO) is expected to “continue as is”, said Aramco chairman Yasir al-Rumayyan, and the oil giant will not be “stop(ping) anything”.

The IPO is likely to take place within the next 12 months pending market conditions, Aramco’s chairman added.

The fact that production was put back on in a short time and that no customers were interrupted shows of Aramco’s reliability, said the energy giant’s chief executive Amin Nasser. ‘When there is a crisis Aramco delivers,’ he said.

The US is gathering evidence of the attack on the oil facility and will present the details to leaders at the United Nations General Assembly next week. So far, the finger pointing puts the blame on Iran, as the attacks were launched from Iranian soil, claims the US.

Read more on oil prices spike 19% after drone attack on Saudi Arabian facilities

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