Oil Steadies After Saudi Pledges to Restore Output

Oil prices were little changed Wednesday, steadying after Saudi Arabia said it would restore by the end of the month production lost in weekend attacks on its facilities.
Prices plummeted 6% Tuesday after Saudi Arabia’s energy minister said the country had managed to restore oil supplies to customers to where they stood before the attacks on its facilities that shut 5% of global oil output by drawing from its huge inventories, CNBC reported.
Brent crude oil futures were flat at $64.55 a barrel. US West Texas Intermediate crude futures were down 15 cents, or 0.1%, to $59.19 a barrel, after sinking 5.7% Tuesday.
“Considering limited spare (production) capacity outside Saudi Arabia and risks of renewed attacks on Saudi energy infrastructure, a risk premium is likely to stay on oil prices in the foreseeable future,” UBS analysts said in a note.
Energy Minister Prince Abdulaziz bin Salman said 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.