'Half of lost oil to be offline for a month'

Saudi investors monitor stocks in Riyadh. Representation pic/AFP

Dubai: Around three million barrels per day of Saudi oil will remain offline for a month, about half the production halted by the weekend's devastating attacks on key crude facilities, S&P Global Platts said in a report on Tuesday. The report came as oil prices dipped slightly following record gains on Monday as uncertainty prevailed on global markets over when the OPEC kingpin will be able to restore lost production.

Strikes on Abqaiq and the Khurais oilfield have knocked out 5.7 million barrels per day (bpd), or six percent of global production. "At this point, it looks likely that around 3.0 million bpd of Saudi Arabian crude supply will be offline for at least a month," S&P said.

Riyadh pumps some 9.9 million bpd of which around 7.0 million bpd are exported, mostly to Asian markets. "Saudi Arabia will likely say they can fully supply their customers, although as time goes on this may be challenging. Any indication of delays or supply tightness will lead to further price increases in the weeks/months ahead," S&P said.

Meanwhile, a US official has told AFP that they are certain Iran was behind the attack. The official said the US was gathering evidence on the attack to present to the international community.

3mn
Barrels per day to remain offline for 1 month

BJP govt concerned

In the biggest hike since July 5 Budget, petrol price increased by 14 paisa per litre to R72.17 and diesel by 15 paisa to R65.58 per litre in Delhi. Oil Minister Dharmendra Pradhan, who on Monday said India won't be hit by the Saudi attacks, said on Tuesday it was "a matter of concern for us".

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