Unbelievably, oil prices are already plunging.
Just days after an attack knocked out 5.7 million barrels of crude production in Saudi Arabia, oil prices are pulling back on reports that production will return to normal faster than expected.
In fact, crude is now down more than 6% on the news.
All after the Saudis said they’re close to restoring 70% of the production lost to the attacks, according to Reuters. “Oil is selling off due to the pressure of margin short covering and the fact that there does not look like there is going to be an immediate military response to the attack,” Phil Flynn, a senior market analyst at the Price Futures, as quoted by Investor’s Business Daily.
If the Saudis can pull this off, oil output will be back online in the next two to three weeks.
War Tensions are Easing
Oil is also pulling back as war tensions cool off.
A day after warning that the U.S. was “locked and loaded” to respond to the Saudi terror attack, President Trump now says there’s “no rush” to do so and that Washington was coordinating with Gulf Arab and European states. “I’m not looking at options right now. We want to find definitively who did this,” as also reported by Reuters.
While the news is pulling down oil stocks, like Exxon Mobil and Chevron, it’s sending oil-dependent company stocks higher, including retailers, airlines, and cruise lines.