Following Monday’s dramatic jump, Oil prices dropped on Tuesday September 17th by more than 6% according to CNBC. This fall came as a result of Saudi Aramco’s announcement that its oil production will be restored to normal levels faster than initially expected.
The international benchmark for oil, Brent Crude Futures, fell $4.41 or 6.39%, to $64.61. This will be welcome news to both governments and people around the world who yesterday saw the largest ever jump in the oil price, a 19.5% rise to $71.95 per barrel.
Citing high up government sources Reuters reported that the Kingdom of Saudi Arabia’s oil production and output will return to full capacity within two to three weeks.
Saudi is close to restoring 70% of the production lost as a result of the attacks.
The largest oil processing facility at Abqaiq and the nearby oil field was attacked on Saturday, knocking out 5.7 million barrels of daily crude production or more than half of the kingdom’s oil output. Saudi Aramco, the national oil company, was previously expected to take weeks to months to restore the majority of its output at Abqaiq.
Although Yemen’s Houthi rebels took credit for the attack both Saudi Arabia and their main ally the United States have pointed to Iran as the more likely organiser of the sophisticated drone strike. Yesterday president Donal Trump tweeted that the U.S. was “locked and loaded” for any future fallout from the strike.