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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.