Oil tumbles on report Saudis will soon recover 70% of daily production

Oil slid on Tuesday after Reuters reported Saudi Arabia’s oil production is expected to fully recover in two to three weeks.

The country is close to restoring about 70% of its daily output of 5.7 million barrels, according to the report, which cited a top Saudi official briefed on the matter.

WTI crude plunged as much as 3%, while Brent Crude tumbled as much as 4%.

The drop comes just a day after oil posted its largest single day gain following a drone strike on key Saudi facilities that threatened to disrupt production. The country is responsible for about 6% of the world’s daily oil output.

The developments are earlier than initial forecasts from analysts, which expected output could be crippled for up to several months.

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source
Markets Insider