Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected U.S. interest rate cut kept wider financial markets in tight ranges.
But investors remained cautious of potential tension in the Middle East after the United States said it believes the attacks that crippled Saudi Arabian oil facilities last weekend originated in southwestern Iran. Iran has denied involvement in the strikes.
Brent crude oil futures fell 36 cents, or 0.6%, to $64.19 a barrel by 0005 GMT, after tumbling 6.5% the previous session.
Prince Abdulaziz bin Salman, the Saudi Minister of Energy, gives a press conference in Jeddah, Saudi Arabia, 17 September 2019. Prince Abdulaziz bin Salman said that his country’s oil production will be fully restored by the end of September, after the drone attack that knocked out almost half of the country’s production. EPA-EFE/STR
U.S. West Texas Intermediate (WTI) crude futures fell 43 cents, or 0.7%, to $58.91 a barrel, after sinking by 5.7% on Tuesday.
Saudi Arabia sought to reassure markets after the attack on Saturday halved oil output, saying on Tuesday that full production would be restored by month’s end.
Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world’s top oil exporter would ensure full oil supply commitments to its customers this month.
Saudi Aramco has informed some Asian refiners that it will supply full allocated volumes of crude oil in October, albeit with some changes.
