Crude oil rose slightly Monday, after gaining nearly 7% last week, as lingering concerns over global supplies following the Sept. 14 attack on Saudi oil facilities offset prospects for a faster-than-expected restoration of the kingdom’s output and on signs of European economic weakness.
Global benchmark Brent futures were up 40 cents to $64.68 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.95% to settle at $58.64/Bbl, Kallanish Energy reports.
Saudi Arabia has restored roughly 75% of crude production lost in the attacks that halted 5.7 million barrels per day (Mmbpd), or more than half of the kingdom’s oil production, a source, briefed on the latest developments in the attack on Saudi oil facilities, told Reuters.
A survey showing euro zone business growth stalled this month, dragged down by shrinking activity in Germany where a manufacturing recession deepened unexpectedly, also weighed on oil and other markets such as equities.
Brent has gained over 19% this year, helped by a supply-limiting pact by Opec+, which includes most Opec producers and 10 non-Opec producers led by Russia.
Tension in the Middle East has escalated since the Saudi attack. The Pentagon has ordered additional U.S. troops to be deployed in the Gulf region to strengthen Saudi Arabia’s air and missile defenses.
Britain believes Iran was responsible for the attack and will work with the U.S. and European allies on a joint response, Prime Minister Boris Johnson said. The U.S. and Saudi Arabia have also blamed Iran, which denies responsibility.
The Saudi attacks have refocused investor attention on the prospect of supply disruptions in other Opec producers. Investors had been less concerned about supply risks due to ample supplies.
This post appeared first on Kallanish Energy News.