Saudi Arabia announced that it fully recovered its oil production

[Akrapovic]

The announcement was made three days after a drone attack on the world's largest refinery.

Saudi Arabia's energy minister, Prince Abdulaziz bin Salman, said on Tuesday that the oil supplies of the kingdom have returned to levels prior to the drone attack last Saturday against oil plants of the state-owned Aramco company.

In a press conference in Riyadh, the headline has affirmed that in the past two days they have been able to recover more than half of the production that was affected by the attacks, that is, approximately 50% of the total.

News in development ...

Read: (They attack the world's largest refinery with drones)

EFE
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Is there enough oil in the world to supply refinery attack?

The attack in Saudi Arabia left 5.7 million barrels of crude oil produced daily.


Refinery - Fire

A satellite image of NASA shows the fire of the world's largest refinery in Saudi Arabia after a terrorist attack.

The global emergency oil reserves system has been tested only a few times over the years. If necessary, it could probably deal with the aftermath of Saturday's attack on a Saudi Arabian oil processing plant in Abqaiq. Any other interruption of this kind, in case the conflict spreads in the Persian Gulf, could be less easy to solve.

Read: (Crude oil prices skyrocket after attack on the largest Saudi refinery)

Executives from Saudí Aramco, the state oil company, said they could restore a "significant" volume of daily closed production of 5.7 million barrels of crude in a matter of days. But it will take weeks to return to full capacity, according to Bloomberg News.

Read: (They attack the world's largest refinery with drones)

If production cannot be restored quickly enough, the world can turn to raw and refined products stored in government-controlled reserves for these types of emergencies.

Read: (US accuses Iran of attacking the world's largest refinery)

President Donald Trump authorized the release of oil from the United States Strategic Petroleum Reserve, while the International Energy Agency (IEA) - which coordinates the reserves - is waiting.

Read: (Trump authorizes the release of oil from US strategic reserves)

Only a few days ago, Opep's oil ministers and their large oil-producing counterparts (collectively known as Opep +) lamented the excessive inventories that still circulated around the world after more than two and a half years of restrictions on supply.

The sudden disappearance of millions of barrels of Saudi crude production on Saturday resulted in the largest increase in Brent's futures since its launch, with a price increase of almost 15% at the end of the day. However, this was not the way in which Opep + intended to see inventory depleted or the increase in the price of crude.

Suddenly, the question is whether the world has enough oil, not too much. Excess supplies were constantly reduced during the first year and a half of the Opep + production restrictions, with a drop of up to 226 million barrels at the end of June 2018, but subsequently stabilized and began to rise again.

At the end of June 2019, according to the IEA, total commercial and government-controlled oil inventories in the member countries of the Organization for Economic Cooperation and Development (Ocde) amounted to 4,480 million barrels, sufficient to cover the Group consumption for 92 days.

There are also important strategic reserves outside the Ocde, especially in China. Of that total of the Ocde, the IEA says that commercial stocks are sufficient to meet the pr