Oil prices drop as Saudi Arabia says will resume full production in weeks
Oil prices dropped more than 6 per cent on Tuesday after a top Saudi Arabian source told Reuters that production could be fully back on line within weeks, quicker than initially thought following weekend attacks that halved the kingdom’s output.
Saturday’s attacks raised the spectre of a major supply shock in a market that in recent months has been preoccupied with demand concerns and faltering global growth. Oil surged as much as 20 per cent at one point on Monday.
Production could be fully online within two to three weeks and the kingdom was close to restoring 70 per cent of the 5.7 million barrels per day lost after the attacks, a top Saudi source briefed on the latest developments told Reuters.
