[16th Reuters]-In a note dated 16th, Barclays indicated that despite the oil facility being attacked, Saudi crude oil exports would not plummet due to abundant stockpile.
On September 14, two oil refining facilities of Saudi Aramco, a state-run oil company, were shut down due to attacks. It was not possible to produce 5.7 million barrels per day, equivalent to about 5% of the world supply.
Barclays expects that the market will not worry much about the current supply decline because next year's supply of oil-producing countries other than the Organization of Petroleum Exporting Countries (OPEC) is expected to expand beyond demand. However, he pointed out that it would lead to a tight supply and demand situation, a decline in inventory and production capacity, which are the key to price formation.
According to data released last month by the Joint Petroleum Statistics Initiative (JDOI), Saudi crude stocks increased from 18787 million barrels in May to 187.9 million barrels in June.
Barclays pointed out that this attack raised questions about the reliance on the supply of countries with the majority of the world's production capacity.
“With increasing geopolitical risk premiums, such as investors assessing the possibility of renegotiating the Iranian nuclear agreement, it will be a factor that will continually push up oil prices.”
