Oil Declines as Market Returns Focus to Saudi Production Return - Bloomberg

Oil Declines as Market Returns Focus to Saudi Production Return - Bloomberg:

Crude declined to the lowest since Saudi Arabia’s oil industry suffered devastating attacks as investors gauged the kingdom’s efforts to restore production.

Futures in New York settled down 1.4% to the lowest since before the Sept. 14 bombardment of Saudi oil installations. State oil producer Aramco has boosted total capacity to more than 11 million barrels a day, according to people with knowledge of the situation, a week earlier than forecast.

The “Saudis seem to be getting their output back on track,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Connecticut. “What we’ve given back is the geopolitical premium.”

West Texas Intermediate for November delivery settled 1.4% lower at $56.49 a barrel on the New York Mercantile Exchange. Brent for the same month closed down 1.1% to $62.39 on the ICE Futures Europe Exchange and traded at a $5.90 premium to WTI.