Oil Market Gripped by Uncertainty Over Lost #Saudi Production - Bloomberg

Oil Market Gripped by Uncertainty Over Lost Saudi Production - Bloomberg:

Oil markets are grappling with uncertainty over how long it will take Saudi Arabia to restore output after the devastating attacks that knocked out 5% of global crude supply.

As state oil giant Saudi Aramco grows less optimistic that there’ll be a rapid recovery after the strikes that cut the nation’s output by half, investors are seeking clarity on just how bad it could be. Initially, it was said significant volumes could begin to return within days, but Saudi officials later told a foreign diplomat they face “severe” disruption measured in weeks and months. Brent crude slipped below $69 a barrel on Tuesday after a record jump Monday.

“If you take 50% of the lost output and bring it back online, you’re still left with an absolutely huge disruption that might continue for some time longer,” Richard Mallinson, a geopolitical analyst at consultant Energy Aspects Ltd. in London, told Bloomberg television. “Things are definitely even more tense across the Middle East than they were before Saturday.”