The oil market will rally by $5-10 per barrel when it opens on Monday and may spike to as high as $100 per barrel if Saudi Arabia fails to quickly resume oil supply lost after attacks over the weekend, traders and analysts said.
Industry sources have said it may take weeks to bring production fully online.
Below are quotes from market participants, traders and analysts.
BOB MCNALLY OF RAPIDAN ENERGY
Crude prices would spike by at least $15-20 per barrel in a seven-day disruption scenario and go well into triple digits in a 30-day scenario.
“This does not include what are likely to be large (if difficult to model or predict) premia to reflect zeroing out of global spare production capacity amidst ongoing disruption risks, hoarding, and panic sentiment.”
GREG NEWMAN, CO-CEO OF ONYX COMMODITIES
Expects Brent futures to open $2 per barrel up and close $7 to $10 per barrel higher on Monday.
The market could see a return to $100 per barrel if the issue cannot be resolved in the short term.
read more:
www.jpost.com/Middle-East/Saudi-attacks-raise-specter-of-oil-at-100barrel-analysis-601741
Crude oil price before the attack was $54.
[RTRS] – SAUDI ARAMCO DAMAGE TO INFRASTRUCTURE WAS BIG, IT CANNOT BE FIXED OVERNIGHT – INDUSTRY SOURCE BRIEFED ON DEVELOPMENTS
— FxMacro (@fxmacro) September 15, 2019
[RTRS] – STILL UNCLEAR HOW LONG SAUDI PRODUCTION SHUT DOWN WILL CONTINUE, SOME INFRASTRUCTURE NEEDS TO BE REBUILT – INDUSTRY SOURCE BRIEFED ON DEVELOPMENTS
— FxMacro (@fxmacro) September 15, 2019
AC