In a Sated Oil Market, #SaudiArabia Attack Sinks Without Trace - Bloomberg

In a Sated Oil Market, Saudi Arabia Attack Sinks Without Trace - Bloomberg:

It was the nightmare scenario dreaded by oil markets for decades: a direct strike right at the heart of Saudi Arabia’s energy production network. But when it finally came last month, crude traders almost immediately lost interest.

Although oil prices surged the most on record after a barrage of missiles and drones blasted the Abqaiq processing facility and Khurais oilfield on Sept. 14 -- instantly disabling half of Saudi output -- the gains have since evaporated. Crude is back below $60 a barrel, partly because Saudi Aramco has restored production so swiftly, but also reflecting deeper challenges afflicting the market.

With a faltering global economy and fears of recession eroding oil demand, combined with a relentless tide of American shale-oil offering alternative supply, the kind of shock that would once have sent prices rocketing has barely left a ripple.