The market remains ahead of concerns that Saudi Arabia‘s recovery from the attack will take longer than expected, though the kingdom has said it will honor its export commitments. There are also concerns that hostilities may be rekindled in the Middle East after Saudi Arabia said Iran unquestionably sponsored the strikes and US President Donald Trump plans to add “some very significant sanctions” to the Persian nation this week.
Oil rose amid Saudi Arabia’s recovery speed from a weekend attack on its facilities that destroyed much of its output.
Futures gained 2.1% in New York after sharing half of Monday’s 15% growth over the past two days. The Saudis have asked Iraq’s national oil company for as much as 20 million barrels of crude to supply its domestic refineries, Dow Jones reported. Damaged Abqaiq oil kingdom facility is operating at about 40% of its pre-attack levels and production should be fully restored by the end of the month, according to Saudi Aramco Chief Executive Amin Nasser.
“It is an exaggeration that calm has returned to the oil market,” despite Saudi Arabia’s security of supply, said Tamas Varga, an analyst at PVM Oil Associates Ltd.
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West Texas Intermediate Crude Oil for October delivery rose $ 1.20 to $ 59.31 a barrel on the New York Mercantile Exchange as of 11:32 p.m. in London. It fell 2.1% on Wednesday after dropping 5.7% on Tuesday.
Brent for the November settlement added $ 1.70 to $ 65.30 a barrel on ICE Futures Europe Exchange after falling 1.5% on Wednesday. The world crude standard was trading at a premium of $ 6.07 to WTI for the same month.
There is also no need to release emergency stocks because current supplies are appropriate, International Energy Agency Executive Director Fatih Birol said Wednesday. Group members held about 1.55 billion barrels of urgent crude stocks, more than enough to offset any outages. The global oil market has enough resources to balance a major supply disruption without requiring a strategic oil release from developed countries, Goldman Sachs Group Inc said in a note.
An Energy Information Administration report showed that US oil rose 1.06 million barrels last week. That was almost double the report by the American Petroleum Institute on Tuesday compared to analysts’ forecasts of a drop of 2.25 million barrels. Gasoline tanks rose 781,000 barrels, while distillate supplies climbed to 437,000 barrels, the EIA said./Investing.com