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Crude Oil Price Steady After Saudi Aramco Official Update

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Eno Eteng (MSTA) Investment writer, Certified Financial Technician
    Summary:
  • Crude oil prie has remained steady above $58.50 after a Saudi Aramco executive provided reassurances of progress on restoration of crude oil output.

Crude oil price remained steady at above $58.50 after an official of Saudi Aramco provided updates on the effort to recover full production in the company’s damaged facilities. According to Saudi Aramco executive Nasser, around 15 towers and facilities were hit at the Abqaiq facility, which took five drone strikes in the stabilizing facility. Nasser also said that 2million barrels of production capacity were restored in the first 48 hours of the attack. He also affirmed that full production capacity would be restored by the end of September, as thousands of workers and contractors were working round-the-clock on a daily basis to achieve this goal.

In other news, China has reassured Saudi Arabia of its commitment to helping the kingdom maintain its territorial integrity. These assurances were provided by Chinese Premier Xi Xinping, who also expressed hope for an objective and fair probe of the weekend attacks on Saudi Aramco’s facilities. Premier Xi also called on a de-escalation of tensions arising from the incident, stating that an increase in oil prices would not be desirable as a result of the slowing global economy.

WTI crude oil price has remained steady above $58.50 after the earlier price shocks that happened at the start of the week. Today’s price action has thinned out into a doji, as traders await further direction on crude oil prices.