Oil prices extend losses after Saudi pledge to restore lost output - Reuters

Oil prices extend losses after Saudi pledge to restore lost output - Reuters: Oil prices retreated about 2% on Wednesday, extending the previous day’s declines after Saudi Arabia said it would quickly restore full production following last weekend’s attacks on its facilities and as U.S. crude stockpiles rose unexpectedly.

Tension in the Middle East remained elevated, however, after the Saudi Defense Ministry held a news conference, displaying drone and missile debris it said was “undeniable” evidence of Iranian aggression. U.S. President Donald Trump on Wednesday said he ordered a major increase in sanctions on Iran in the latest U.S. move to pressure Tehran.

Iran has denied involvement in the strikes.

The United States wants to build a coalition of European and Arab partners to deter Iran after the attack on Saudi Arabia that Secretary of State Mike Pompeo described on Wednesday as “an act of war.”

Brent crude oil futures LCOc1 ended the session down 95 cents, or 1.5%, at $63.60 a barrel while U.S. West Texas Intermediate (WTI) crude CLc1 futures settled $1.23, or 2.1% lower, at $58.11.