Saudi Arabia, the world’s largest crude oil exporter, will regain at least one-third of the output disrupted by Saturday’s terrorist attacks on its oil facilities at the Abqaiq plant and Khurais field, experts said.
The terrorist attacks cut Saudi production by half to 5.7 million barrels, shocking global oil markets.
The Saudi Energy Minister, Prince Abdul-Aziz bin Salman said on Sunday that Saudi Arabia would use its huge oil reserves to partially compensate for falling production and the United States has allowed its reserves to be used as well.
However, oil prices rose on Monday by more than 15%, while accusations against Iran contributed to fueling geopolitical concerns.
Energy Intelligence reported that Saudi Aramco is about to recover up to 40% of lost production, about 2.3 million bpd, according to Energy Intelligence, citing oil industry sources.
An upcoming official announcement
Quoting informed sources, the Wall Street Journal wrote that it would take weeks to restore the plants’ full capacity.
However, one of its sources said, “We should be able to pump two million bpd in the market by tomorrow, Monday”.
Energy Aspects firm for consultations also estimated that Saudi Arabia would be able to recover nearly half of the lost production early on Monday. Riyadh said on Saturday that it would publish an update on the situation within 48 hours of the terrorist attacks, while the eyes are on an official announcement that could reassure markets.
Saudi state television said on Monday that Aramco was ready to re-operate Khurais facilities, which process 1.5 million bpd.
Saudi Arabia, OPEC’s largest producer, pumps 9.9 million bpd, or nearly 10% of global demand, including 7 million bpd for export.
Saudi Arabia also has an unused capacity of about 2 million bpd that it can be used in case of crises.
US Secretary of State, Mike Pompeo blamed Tehran, saying there was no evidence that Yemen had been used to launch an unprecedented attack on global energy supplies.