{"id":48475,"date":"2019-09-15T12:14:33","date_gmt":"2019-09-15T17:14:33","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48475"},"modified":"2019-09-15T12:14:42","modified_gmt":"2019-09-15T17:14:42","slug":"could-be-weeks-before-aramco-restores-full-production-capacity-as-specter-of-100-oil-looms","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48475","title":{"rendered":"Could Be “Weeks” Before Aramco Restores Full Production Capacity As Specter Of $100 Oil Looms"},"content":{"rendered":"\n

Could Be “Weeks” Before Aramco Restores Full Production Capacity As Specter Of $100 Oil Looms<\/a><\/h3>\n\n\n\n

With the Saudis now racing to restore full oil production to normal levels as one Sunday morningheadline noted<\/a>, the industry is bracing for a potential significant delay in production \u2014 <\/em>given rumors the fires at the facilities struck in the early hours of Saturday may not be fully “under control”<\/a> as the kingdom was quick to assure hours after the raging explosions \u2014 <\/em>which could translate into oil prices being very high for a long time. Industry sources said<\/a> it could take weeks<\/em> to return full production levels to normal<\/strong>.<\/p>\n\n\n\n

Following what Yemen’s Houthis claimed was their own successful targeting of Saudi Arabia’s second largest oil field in the Khurais, as well as the sprawling Abqaiq\u00a0oil processing facility in Buqyaq\u00a0\u2014<\/em>\u00a0described by Aramco\u00a0as “the largest crude oil stabilization plant in the world”\u00a0\u2014\u00a0<\/em>the Saudi company acknowledged it was forced to slash its output by half, equal to about\u00a05% of world supply<\/strong>,\u00a0specifically\u00a05.7 million barrels a day of oil production lost. In the meantime,\u00a0Saudi Arabia\u2019s\u00a0stock market<\/a>\u00a0fell by 2.3% at Sunday\u2019s open<\/strong>.<\/p>\n\n\n\n

\"\"\/
Satellite imagery showing the scene at Abqaiq crude processing facility in Buqyaq,Sept. 14, 2019. Via\u00a0Planet Labs\/NBC<\/em><\/figcaption><\/figure>\n\n\n\n

What will Monday bring? Upon market opening there’s widespread prediction oil will rally by\u00a0$5 to $10 per barrel, and\u00a0as we were among the first to note<\/a>,\u00a0could eventually hit $100 per barrel\u00a0<\/strong>\u2014\u00a0<\/em>the latter alarming scenario dependent on how slow or fast the facilities can be brought back online.<\/p>\n\n\n\n

As Bloomberg <\/em>detailed, citing insiders familiar with Aramco operations<\/a>:<\/p>\n\n\n\n

Aramco would need weeks to restore full production capacity to a normal level<\/strong>, according to people familiar with the matter. The producer however can restore significant volume of oil production within days<\/strong>, they said. Aramco could consider declaring force majeure on some international shipments if the resumption of full capacity at Abqaiq takes weeks, they said.<\/p><\/blockquote>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Could Be “Weeks” Before Aramco Restores Full Production Capacity As Specter Of $100 Oil Looms With the Saudis now racing to restore full oil production to normal levels as one Sunday morningheadline noted, the industry is bracing for a potential significant delay in production \u2014 given rumors the fires at the facilities struck in the early hours of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,5],"tags":[588,4318],"class_list":["post-48475","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-oil","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48475","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48475"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48475\/revisions"}],"predecessor-version":[{"id":48476,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48475\/revisions\/48476"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48475"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}