Oil rises 10% on Saudi attacks, stockpile hopes pare early gains

London/Singapore, Sep 16 

Oil prices surged nearly 20% at one point on Monday, with Brent crude posting its biggest intra-day gain since the 1990-1991 Gulf crisis, after an attack on Saudi Arabian oil facilities at the weekend halved the kingdom’s production.

Prices retreated after US President Donald Trump approved the use of his country’s emergency oil stockpile to ensure stable supply. But he also said he was ready to respond to the strike, a prospect that maintained geopolitical tensions. Brent crude futures, the international benchmark, rose as much as 19.5% to $71.95 per barrel, the biggest intra-day jump since January 14, 1991. By 1236 GMT, the contract was at $66.67, up $6.45, or 10.7%.

Saudi Arabia is the world’s biggest oil exporter and, with its comparatively large spare capacity, has been the supplier of last resort for decades.

Sources said a full return to normal production “may take months”.  Trump approved the release of oil from the US strategic reserve but added the US was "locked and loaded" for a potential response to the attack. — Reuters

Supply to India won’t hit: OilMin

• The Oil Ministry said on Monday Saudi Arabia has assured that supply to India won’t be affected
• The attack on Saudi oil facility has knocked out over half of Saudi Arabia’s production as it cut 5.7 million barrels per day of the world’s supply.

US futures climb 15.5% intra-day

• Brent crude futures rose to $71.95 per barrel, the biggest intra-day jump since January 14, 1991. By 1236 GMT, the contract was at $66.67, up $6.45, or 10.7%
• US West Texas Intermediate (WTI) futures climbed as much as 15.5% to $63.34, the biggest intra-day percentage gain since June 22, 1998. The contract was later at $60.29, up $5.44 or 9.9%

Strategic reserves at 55% capacity

• India’s strategic petroleum reserves stand at 55% of available underground storage capacity of 5.33 million tonnes
• India has three strategic reserves in the soutthern cities of Vizag, Mangalore and Padur
• Vizag is currently filled up to 100% while Mangalore and Padur are currently at 55% and 25% of their capacity, respectively