18/ Sep’19

Oil gives back gains as Saudi supply starts returning

Will oil prices impact interest rates?

Optimal Capital director of strategy Francis Newton Stacy and Heritage research fellow Joel Griffith discuss how oil prices from the recent Saudi attack will impact the Federal Reserve’s decision on interest rates.

Oil is sliding again on Wednesday morning on the news of how much Saudi production will resume following the weekend attacks on facilities.

Saudi Arabia's energy minister says 50 percent of the production cut by the attack on its oil processing plant has been restored.

Prince Abdulaziz bin Salman made the comments Tuesday night at a news conference in Jiddah.

Brent crude futures dipped 0.1 percent to $64.50 a barrel, having conceded more than 60 percent of their gains made after the attack.

U.S. West Texas Intermediate  crude lost 0.5 percent to $59.06 per barrel.

The attack Saturday struck a Saudi oil field and the world's largest crude oil processing plant, which knocked out 5.7 million barrels of crude oil production per day for the kingdom, or about 5 percent of the world's daily production.

The prince added that within this month, production capacity will be up to 11 million barrels per day by the end of September. It had been around 9.6 milllion barrels per day before the attack.

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Yemen's Houthi rebels, whom a Saudi-led coalition have been fighting since March 2015, claimed the attack. However, U.S. and Saudi officials say they believe Iran carried out the assault, something denied by Tehran.

The Associated Press contributed to this article.