23/ Sep’19

Oil gains on Saudi supply doubts, Mideast tensions

Saudi Aramco CEO: Oil attack was huge, but we managed to restore capacity

Oppenheimer managing director Tim Rezvan and Raymond James Senior Vice President and senior energy analyst Pavel Molchanov discuss the oil attacks in Saudi Arabia.

Oil prices rose after President Trump, arriving in New York for the meeting of the United Nations General Assembly, said he intended to seek support for a coalition to confront Iran after the U.S. blamed it for last week's strike on a Saudi Arabian oil facility.

There are also doubts over how fast Saudi Arabia can get back to full output after last weekend's attack, according to Reuters.

Oil prices rose more than 1 percent to start the week.

U.S. crude oil added 71 cents to $58.79 a barrel, while Brent crude, the international standard, picked up 82 cents to $65.10 per barrel.

Iran's president on Sunday urged Western powers to leave the security of the Persian Gulf to regional nations led by Tehran.

He criticized a new U.S.-led coalition patrolling the region's waterways as nationwide parades showcased the Islamic Republic's military arsenal.

Hassan Rouhani also promised to propose a regional peace plan at this week's UN meetings.

The U.S. alleges Iran carried out the Sept. 14 attack on Saudi Aramco's largest oil processor, which caused oil prices to spike by the biggest percentage since the 1991 Gulf War.

While Yemen's Iranian-allied Houthi rebels claimed the assault, Saudi Arabia says it was “unquestionably sponsored by Iran.”

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For its part, Iran denies being responsible and has warned any retaliatory attack targeting it will result in an “all-out war.”

The Associated Press contributed to this article.