London/Singapore, Sep 16
Oil prices surged nearly 20% at one point on Monday, with Brent crude posting its biggest intra-day gain since the 1990-1991 Gulf crisis, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom’s production.
Prices retreated after US President Donald Trump approved the use of his country’s emergency oil stockpile to ensure stable supply. But he also said he was ready to respond to the strike, a prospect that maintained geopolitical tensions. Brent crude futures, the international benchmark, rose as much as 19.5% to $71.95 per barrel, the biggest intra-day jump since January 14, 1991. By 1236 GMT, the contract was at $66.67, up $6.45, or 10.7%.
Saudi Arabia is the world’s biggest oil exporter and, with its comparatively large spare capacity, has been the supplier of last resort for decades.
Sources said a full return to normal production “may take months”. Trump approved the release of oil from the US strategic reserve but added the US was "locked and loaded" for a potential response to the attack. — Reuters
Supply to India won’t hit: OilMin
US futures climb 15.5% intra-day
Strategic reserves at 55% capacity
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