Oil plunges after Saudi Arabia secures production restoration in weeks
U.S. oil futures plunged on Tuesday after a Monday manic in oil price.
U.S. oil futures dropped 5.7% at $59.24 per barrel, its lowest one-day drop since August. Oil prices went down after reports came out that Saudi Arabia would restore its regular oil production within two to three weeks.
Energy Minister of Saudi Arabia Abdulaziz Salman said on Tuesday that Saudi’s oil exports would not fall in September, as it said that it would use its oil reserves to keep exports stable.
Investors showed glimmers of hope to the news, easing worries about the weekend blasts on oil supply in Saudi.
Brent crude also fell 6.5% at $64.55 per barrel.
Meanwhile, U.S. stocks rose following the oil price slide. The Dow increased by 0.1%, the S&P 500 gained 0.3%, and the Nasdaq Composite increased by 0.4%