Oil plunges after report says Saudi Arabia could get production up sooner than expected

Should the US be concerned about lack of global oil supply?

Refinitiv Oil Market Analyst Carl Larry on whether the U.S. should be worried about the lack of global oil supply in wake of the Saudi Aramco oil field attacks.

Oil plunged Tuesday morning after a report said Saudi Arabia expects to have its production back to full speed sooner than expected.

The kingdom thinks its facilities will be fully operational in the next two to three weeks, Reuters reports, citing a Saudi source. It had previously expected to return to full capacity in a month or longer.

Saudi Arabia, OPEC’s most influential member and the world’s second-largest oil producer, accounts for more than 10 percent of daily crude oil production.

Brent crude was down $3.74, or 5.42 percent, at $65.28 a barrel and West Texas Intermediate was down $3.12, or 4.96 percent, at $59.78 a barrel.

Both West Texas Intermeidate and Brent crude oils surged more than 14 percent Monday after weekend drone attacks on Saudi Arabia's facilities took half of the kingdom's production offline.

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The U.S. has blamed Iran for the attacks, but the Saudis aren't yet ready to point the finger at its neighbor.

Ken Martin contributed to this post.