Skip to comments.Saudi Officials Say Oil Production to Return to Normal Levels by Monday
Posted on 09/14/2019 3:45:36 PM PDT by Zhang Fei
Officials in Saudi Arabia indicated it would return to normal levels of oil production by Monday, as they sought to reassure world markets after a drone attack Saturday on one of the kingdoms most productive oil facilities prompted it to cut its crude production in half.
The attack led to speculation that the U.S. and Europe could release emergency stockpiles. On Saturday, the International Energy Agency, a Paris-based group representing top energy-consuming nations, said it was in contact with Saudi authorities and major producer and consumer nations, and for now, markets are well supplied with ample commercial stocks, the group said. The IEA is monitoring the situation in Saudi Arabia closely.
The attack by Yemeni rebels, called Houthis, led to the shutdown of five million barrels a day of Saudi oil production. The facility attacked by drones early Saturday will resume production by Monday, kingdom officials said.
Markets havent seen a shutdown on the scale of Saudis five million barrels since Iraq invaded Kuwait in 1990. That conflict, which led to an international military intervention, saw the loss of four million barrels a day.
A sustained Saudi outage of several million daily barrels would likely prod U.S. and Europe officials to release emergency stockpiles, according to officials with the Organization of the Petroleum Exporting Countries and analysts.
While the group of industrialized nations would normally coordinate a release, the U.S. would be expected to turn to its own Strategic Petroleum Reserve to help global markets avoid price spikes.
The drone attacks Saturday hit Hijra Khurais, one of Saudi Arabias largest oil fields producing about 1.5 million barrels a day, and Abqaiq, the worlds biggest crude stabilization facility, which processes seven million barrels of Saudi oil a day, or about 8% of the worlds total output.
(Excerpt) Read more at wsj.com ...
Im filling up after work, just in case.
Don’t fall for public declarations, let’s see PROOF of production levels resuming.
It can be taken off line again at any time. The Saudis have no effective defenses against these Yemeni drones & cruise missiles. They better end the war with Yemen.
Remain calm, all is under control.
The value of Saudi press releases regarding oil production are at least as good as Democrat ones.
They can reload faster
$hit! My 401k could have used some $100 per bbl action... /s
Something is going to happen if it wasn’t this.
50 cent buyer (as known in the biz) spent almost 6 million on VIX Oct 16 24 calls. The dude makes out like a bandit when he does this..I speculate Soros but it’s someone that has a pipeline on news.
Saudi led energy cartel isn’t about to let things slide to far...and they will see to it Iran has pay back .
The Brit’s recently prevented the shutdown of Heathrow Airport by jamming activist’s use of drones, intended to disrupt flight operations.
Oil futures were down over the weekend. All markets are completely manipulated. The entire financial system is crooked.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.