• 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 8 hours European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 3 days Demonising fossil fuels has caused major grid problem in Australia
  • 8 days "And this is perhaps the most dangerous kind of government there can be."
  • 2 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 5 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 329 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 7 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Citi And Barclays Raise Oil Price Forecasts

Citi And Barclays Raise Oil Price Forecasts

Two banks—Citi and Barclay’s—raised their…

Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Why Oil Prices Just Fell 6%

Oil prices fell sharply on late Tuesday morning as Reuters reported that Saudi Arabia’s oil output may return to normal more quickly than earlier reports had suggested.

Oil production is expected to return to normal within two to three weeks, anonymous Reuters sources suggested, contrary to yesterday’s reports that took a more pessimistic view of how long it would take for Aramco’s production to come back online.

By 10:40am EDT, WTI had sank $3.83 per barrel (-6.09%) to reach $59.07. The price is still high compared to the $55/$56 levels that we’ve seen in recent weeks. Brent crude is also trading sharply down, losing $4.19 per barrel (6.19%) on the day, reaching $63.49 per barrel. Brent is still trading up week over week.

Saudi Arabia is now thought to be close to bringing back online 70% of the 5.7 million barrels per day that were brought offline after an attack on The Kingdom’s oil infrastructure, a top Saudi official told Reuters. The rest, the source said, would come back online within two to three weeks.

Yesterday, sources reported that it could take months to fully restore Saudi Arabia’s oil output.

The news of the attacks that took Saudi production offline sent oil prices soaring on Monday to a 20% increase, doing what OPEC and its allies have been trying to do for over a year—bring down oil inventories to lift prices.

On Saturday, the Abqaiq facility and the Khurais oil field in Saudi Arabia were hit by attacks, which resulted in the suspension of more than half of Saudi Arabia’s oil production. The onshore Khurais oil field has the capacity to produce 1.2 million bpd of Arab Light, according to EIA estimates. The Abqaiq facility, for its part, is considered to be the most important oil processing plant in the world.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on September 17 2019 said:
    Despite the considerable damage sustained by Aramco’s oil installations of Abqaig considered to be the most important oil processing plant in the world and the Khurais oil field one of Saudi Arabia’s biggest, two major bearish factors are tempering the rise in oil prices. One is the glut in the global oil market which has been enhanced in recent months by the trade war between the US and China. The other is sizeable volumes of Saudi crude oil stored on board oil tankers and also in underground stores on land.

    However, the whole situation could change overnight if repairs to the damaged facilities could take weeks rather than days.

    At present, Saudi Arabia is able to meet oil demand by its customers by tapping its stored crude oil. But two to three weeks of withdrawing 80- 120 million barrels of oil could deplete its inventory and deprive the world’s largest exporter of oil of any spare production capacity making it unable to meet global oil demand in case of an emergency. That could push oil prices beyond $80 a barrel. So all depends on the accuracy of Saudi pronouncements about the time Aramco needs to repair the damage.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News