Yesterday Saudi Aramco informed that the oil production infrastructure had been rebuilt after the recent attack. The market prices negatively reacted to that news. But today we can observe the expected correction.
At 8 am Moscow time, Brent crude oil futures (traded at ICE Futures), rose to $ 59.69 per barrel ($ 0.44 or 0.74%). We recall that on Monday the asset lost $ 1.79 (almost 3%!).
Oil of another popular benchmark WTI has increased $ 0.48 (or 0.89%) – to the mark of $ 54.55 per barrel. Yesterday, WTI fell to $ 59.25, i.e. $ 1.79 (2.93%).
After rebuilding the infrastructure, oil production in Saudi Arabia is approximately estimated at 9.9 million barrels per day. Quick repairs have become an incredibly strong bearish catalyst for the energy market. Negotiations between representatives of the United States and China, scheduled for the end of next week, may become the bullish factor. Many analysts still hope that a successful meeting will stop the global economic downturn and weakening of the energy market. Although there are much more skeptics, of course…
September was not an awful month for oil: Brent has increased 0.6%. WTI, however, has lost 1.9%. The statistics for the third quarter of this year looks different: the European benchmark has lost 8.7%, the American – 7.5%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group