Oil stabilizes amid mixed reports over pace of Saudi recovery
Time:2024-10-22
Brent crude was little changed, after falling as much as 1.2%. Saudi Arabia, which has reiterated it will bring back all lost output by the end of September following attacks on its oil facilities, is on course to fulfill the promise, according to Reuters. That comes after the Wall Street Journal over the weekend said repairs at damaged plants may take “many months.” Concerns over waning demand returned after a key European manufacturing index had its worst slump since the financial crisis.
Some analysts and consultants, including Rystad Energy and FGE, have also said they are skeptical about the kingdom achieving its target. Bank of America analysts said that a delay to the return of Saudi oil output, among other factors, could push Brent above $70/bbl.
“People are going to be constantly looking for any signs that Saudi production is coming or going,” said Bob Yawger, director of the futures division at Mizuho Securities USA. “Add to that the poor German PMI numbers and the trade situation.”
The market has been whipsawed by various data points and headlines even as geopolitical tensions mount in the Middle East. Iran’s Foreign Minister Mohammad Javad Zarif refused to rule out war following plans for increased U.S. troops and weapons in Saudi Arabia, he said in an interview with CBS.
