Singapore — Crude oil price gains receded ahead of European trading in London, after hitting record gains in earlier Asian trading, as traders look beyond the immediate shock from the loss of half of Saudi Arabia's crude production in Saturday's attacks on key oil facilities.
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At 0859 GMT, ICE Brent November futures were up $4.70/b from Friday's close at $64.92/b, while the NYMEX October light sweet crude futures were up $4.12/b at $58.97/b. That is down from intraday highs of $71.95/b and $64.93 respectively.
"The attacks on critical Saudi oil infrastructure over the weekend are unlikely to reduce the Kingdom's oil exports dramatically and the markets will likely look beyond short-term supply-demand dislocations," said Amarpreet Singh, oil analyst at Barclays.
"However, a re-pricing of supply-side tail risks will likely provide a more sustained boost to oil prices."
The attacks on Saudi Arabia's Abqaiq and Khurais oil facilities could translate to an estimated 5.7 million b/d, or 5% of global crude production, said Saudi energy minister Prince Abdulaziz bin Salman.
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