EMEA News
Oil Rises But Traders Worry Over Rapid Saudi Production Recovery
Saudi Arabia's claims that its oil facilities will soon fully recover from the drone attacks have been alternately believed and disputed ever since they were first issued a week ago; but on Monday traders took them to heart and caused crude prices to rise about 1 percent.
Brent rose 49 cents, or 0.8 percent, to settle at $64.77 per barrel, while West Texas Intermediate gained 55 cents, or 1 percent, to settle at $58.64.
It should be noted that the end of session prices reflected reports that the Saudis could return to full output by as early as next week; earlier in the session, prices for Brent escalated to $65.50 on the strength it would take months to repair the drone damage.
Phil Flynn, senior market analyst at Price Futures Group Inc., said, "The market is hesitant to drive too much higher at this point until it gets more facts, but I think the bullish news outweighs the bearish news and that is why we are up at the end of the day."
Meanwhile, Javad Zarif, foreign minister for Iran, said his country was prepared for "all-out war" in the event of attack by the Saudis or U.S., which blame the Islamic republic for the bombings.
However, unsurprisingly for a country famous for its sabre-rattling, Iran on Monday appeared to make a move designed to cool rising tensions, by stating that the British-flagged tanker Stena Impero is "free to leave"; the ship was seized on July 19, two weeks after Britain detained an Iranian tanker off Gibraltar.
