Saudi Arabia: Record oil price spike after attack

Speed of Saudi Oil Recovery In Focus After Record Supply Loss
  • Aramco to update market Monday; full resumption may take weeks
  • Brent oil trades above $66 after easing back from record jump

All eyes are on how fast Saudi Arabia can restore production after this weekend’s devastating strike on key facilities, which knocked out roughly 5% of global supply and triggered a record surge in oil prices.

Significant volumes could come back within days, people familiar with the matter said over the weekend, adding that it could still take weeks to restore full capacity. Industry consultant Energy Aspects estimated that the country will be able to restore almost half the lost production as early as Monday. Saudi Aramco said Saturday that it would provide an update in about 48 hours. It didn’t immediately respond to requests for comment Monday.

Oil prices spiked nearly 20% following a drone attack on a processing facility and an oil field in Saudi Arabia. The Saturday attacks cut over 5% of global supply and sent Brent crude surging as markets opened Monday — the most since trading began in 1988 — before paring down slightly. Saudi’s national oil company Aramco was set to restore two million barrels by today, reported The Wall Street Journal, citing anonymous sources. President Trump also authorized the release of oil from the U.S.’ strategic reserve — if needed.

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