The drone attack on oil facilities over the weekend rallied Monday’s oil prices at one of the fastest rates on record, causing a huge gap upon market open.
Following the huge gap in oil prices on Monday, Tuesday’s market saw a slump in oil pricing after Reuters reported that Saudi Arabia’s levels of oil production will return to normal within the following two to three weeks.
Us crude oil fell by 6.9% to $58.6 a barrel, while Brent saw a drop of %7.4 to $63.9 per barrel, around 14:00 NY time.
WTI Crude currently trades below $60 per barrel and has fallen 3% from yesterday’s highs. Traders will now be looking for the market to cover the weekend gap which closed on Friday at $54 per barrel. The question is, how fast can Saudi Arabia react to the Oil supply output normality
