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Wed 25 Sep 2019 12:50 PM

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Oil declines as Saudi Arabia restores capacity ahead of schedule

Saudi Aramco's production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week

Oil declines as Saudi Arabia restores capacity ahead of schedule
The Abqaiq processing plant has 4.92 million barrels a day of capacity available and Khurais 1.3 million.

Oil extended losses as Saudi Arabia was said to be ahead of schedule in restoring its output capacity.

Futures lost as much as 1.5% in New York after dropping 2.3% on Tuesday. Saudi Aramco’s production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week, according to people with knowledge of the situation. The Abqaiq processing plant has 4.92 million barrels a day of capacity available and Khurais 1.3 million, they said.

Aerial strikes on the two plants on Sept. 14 disabled 5% of global crude supply, driving crude higher by the most on record. Prices have pulled back since as Aramco - formally known as Saudi Arabian Oil Co - has promised it will return all lost production by the end of this month. A gloomy global economic outlook and weakening oil demand growth has also pushed oil lower.

West Texas Intermediate for November delivery dropped 79 cents, or 1.4%, to $56.50 a barrel on the New York Mercantile Exchange as of 9:18 a.m. London time. Brent for November slipped $1.04, or 1.7%, to $62.06 a barrel on the ICE Futures Europe Exchange, and traded at a $5.53 premium to WTI.

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