Oil situation brighter

ATTACK: SAUDI FACILITY’S CAPACITY NOT AS AFFECTED AS FIRST THOUGHT

Prices dip slightly after spiking on Monday on back of news of air strike.

About 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 Platts said yesterday.

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 – the world’s largest processing plant – and the Khurais oilfield that the US has blamed on Iran have knocked out 5.7 million barrels per day (BPD), or 6% of global production.

“At this point, it looks likely that around three million BPD of Saudi Arabian crude supply will be offline for at least a month,” S&P Global Platts said in a report.

Riyadh pumps about 9.9 million BPD, of which around seven million are exported, mostly to Asian markets.

“Saudi Arabia will likely say that 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.

The threat of a prolonged supply outage from Saudi Arabia highlights the lack of spare production capacity in the market. – AFP

Dismayed Thais woke up yesterday to the news of Chuang Chuang’s death.

“He was so lovely,” said Twitter user @Janekwb. “Rest in peace, little bear.”

Chiang Mai zoo director Wutthichai Muangmun said before his death, Chuang Chuang was doing what he liked best – eating bamboo.

“He was walking around, but staggered and fell to the ground,” he told reporters. – AFP