Saudi Arabia says oil supply fully back online

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 after Saudi Prince Abdulaziz bin Salman said at a press conference that the country's oil supply is fully back online and that the kingdom expects to ramp up production in the coming weeks.

“The damage has been contained,” he said, adding that production is expected to return to 9.89 million barrels per day in October. The kingdom is expected to reach 11 million bpd capacity by the end of September and 12 million bpd by the end of October.

Brent crude oil, the international benchmark was lower by 6.39 percent, or $4.41, to $64.61. West Texas Intermediate crude oil, the U.S. benchmark, was down $3.61, or 5.72 percent, at $59.30 a barrel.

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. More than half of its supply was knocked offline over the weekend by drone attacks, causing both Brent and WTI to soar by more than 14 percent on Monday.

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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.