Oil futures declined Tuesday, with U.S. prices losing nearly 6%. The move follows news that Saudi Arabia's energy minister Prince Abdulaziz bin Salman said the kingdom has restored 50% of its production lost in the weekend attacks on its oil facilities and plans to see its output return to normal by the end of this month, according to The Wall Street Journal.
With capacity of 11 million barrels a day to be restored by end-September, "there will be minimal disruption to global supply," wrote Caroline Bain, chief commodities economist at Capital Economics, in a note. "That said, there remain some important questions to be answered about the attacks, which may mean that we will have to consider a permanently higher risk premium in our price forecasts," she said.
October West Texas Intermediate oil fell $3.56, or 5.7%, to settle at $59.34 a barrel on the New York Mercantile Exchange. It rose nearly 15% Monday to settle at $62.90, the highest finish for a front-month contract since May 21, according to FactSet data.
Source : Marketwatch