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Significance
That attack knocked 5.7 million b/d offline. Prince Abdelaziz bin Salman, the new energy minister, suggested that the entire Abqaiq output would be restored by the end of September, and that total capacity would reach 12 million b/d by the end of November. Actual production would recover to its pre-attack 9.8 million b/d by October.
Impacts
A repeat attack or a slower recovery than officials predict would support prices into next year.
Other countries in the OPEC+ deal will step up production, against Saudi wishes, to meet any market shortfalls.
If prices were significantly elevated for several months, US shale producers would respond with increased drilling.
Keywords:
economy,
industry,
energy,
foreign trade,
oil,
prices,
productivity,
chemical,
gas,
privatisation,
security,
utilities,
Fossil fuels,
Saudi Arabia,
ME/NAF
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2019
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