Oil Prices Record Drastic Drop as Saudi Begins Recovery 

By Adedapo Adesanya

Oil prices on Tuesday fell after surging over the weekend and on Monday, following a set of coordinated attacks on Saudi Arabia’s oil supply. The two Saudi facilities attacked account for about 50 percent of the country’s oil output and 5 percent of daily global oil production.

Saudi Arabia has said its oil output will return to normal by the end of this month, with half the production lost in drone attacks on two key facilities already restored.

The news immediately affected the oil markets, with the price falling on Tuesday after Monday’s huge spike.

Brent Crude, which had traded higher to almost $70 per barrel, dropped 6.09 percent or $5 to trade at $64 per barrel on Tuesday.

For the US oil, West Texas Intermediate (WTI) Crude, it dropped 5.56 percent, losing almost $4 to trade at $59.34.

“Production will be back to normal by the end of September,” Saudi Energy Minister Prince Abdulaziz bin Salman told a press conference. He also disclosed that the state oil giant Aramco had emerged “like a phoenix from the ashes” after the attack

The drone attacks on plants in the heartland of Saudi Arabia’s oil industry hit the world’s biggest petroleum processing facility as well as a nearby oilfield, both of which are operated by Aramco, which is being prepared for what is expected to be the world’s biggest share market listing.

President Donald Trump also disclosed that following this, it was no longer necessary to release reserves from US emergency stocks.

The US had blamed the attacks on Iran, and had said it could release more of its strategic reserves on the market to restore calm to prices.