Saudi Arabia is moving quickly to restore the 5.7 million barrels a day of oil production knocked out in the September 14 drone and missile attacks on its Abqaiq processing facility. But even if the kingdom can return output of the full 12 million barrels a day by November, American oil producers are in a strong position to benefit from the Saudi’s setback.
The “risk premium” built into oil prices has waned dramatically since the attacks. U.S. benchmark West Texas Intermediate (WTI) closed at just under $54 a barrel on September 13th and now trades around $56.
