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Oil Futures Retreat, Settle Sharply Lower

Oil Futures Retreat, Settle Sharply Lower
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Crude oil prices retreated on Tuesday, after having climbed up sharply in the previous session following the drone attack on a couple of Saudi Arabia’s oil facilities.

Oil prices dropped in today’s session, reacting to news that Saudi Arabia has restored about half the production lost in the attacks last weekend.

Saudi Arabia’s energy minister Prince Abdulaziz bin Salman is also reportedly said the kingdom expects crude output to return to normal by the end of this month.

West Texas Intermediate Crude oil futures for October ended down $3.56, or 5.7%, at $59.34 a barrel.

On Monday, oil prices plunged 20% before regaining some lost ground, but still settled the session with a sharp loss of

Prices tumbled on Monday, weighed down by the devastating attacks on Saudi oil facilities that knocked out 5% of global crude supply.

The recovery from the day’s lows on Monday came about after the U.S. hinted at possible release of crude reserves.

U.S. President Donald Trump, who said the U.S. was “locked and loaded” to respond to the attacks on Saudi oil facilities, with Secretary of State Mike Pompeo pointing the finger at Iran, indicated today that the U.S. prepared to respond militarily but has stopped short of definitively blaming Iran for the attacks.

Yemen’s Houthi rebels have reportedly claimed responsibility for the attacks.

A report released by the Energy Information Administration (EIA) today said crude oil production from seven major U.S. shale plays is forecast to climb by 74,000 barrels a day in October to 8.843 million barrels a day.

Meanwhile, traders were also looking ahead to the weekly crude inventory data from the American Petroleum Institute (API) and EIA.

The API will release its weekly report later on Tuesday, while EIA’s data is due at 10:30 AM ET on Wednesday.

The material has been provided by InstaForex Company – www.instaforex.com