Saudi "Recovering oil production by the end of September" market still uneasy

At the press conference on the 17th, the country's Minister of Energy Abdul Aziz over the attack on oil facilities in Saudi Arabia revealed that production capacity will return to pre-attack levels by the end of September. In the New York market, supply concerns eased and crude oil prices, which soared the previous day, began to decline.

According to the 14th attack, 5.7 million barrels per day, about half of the country's production, were temporarily stopped, and it was expected to take several months for recovery. Abdul Aziz stated that the production capacity would be "11 million barrels a day by the end of September and 12 million barrels by the end of November", stating the early recovery. The damaged eastern Abu Kaiku oil facility is being rehabilitated and has already started producing 2 million barrels a day.

Abdul Aziz said that he was “completely restored” by allocating stockpiles, and indicated that he would continue to supply as planned.

Saudi Aramco Chairman Rumaiyan, the victim of the state-run oil company, said at the meeting on the 17th that the initial public offering (IPO), which had been concerned about delays, was "prepared within 12 months" and intends to continue preparations as scheduled. showed that.

Following a series of explanations from the Saudi side, the view that the facility restoration would be earlier than expected in the crude oil market spread. At the New York Commercial Exchange on the 17th, the futures price of “US-made WTI crude oil”, which is an indicator of crude oil prices, plummeted. The deal was closed at $ 3.56 (5.7%) cheaper than the previous day at $ 59.34 per barrel. However, it is only 8.2% higher than 1 barrel = 54.85 dollars on the 13th before the facility attack, and it seems that the market still feels uneasy.

US President Trump, who mentioned the release of oil reserves, told reporters on the 17th, “I don't think (release) is necessary. Crude oil (price) hasn't increased very much.” (Tehran = Shinya Sugisaki, New York = Takashi Ezo)