Oil prices drop on hope for recovery of Saudi output

epaselect epa07645392 The crude oil tanker Front Altair on fire in the Gulf of Oman, 13 June 2019. According to the Norwegian Maritime Authority, the Front Altair is currently on fire in the Gulf of Oman after allegedly being attacked and in the early morning of 13 June between the UAE and Iran. EPA/STRINGER

Oil prices fell on Wednesday after the Saudi government said half of production that was knocked out by an attack over the weekend had already had been restored. The decline came after prices spiked on Monday following the attack.

Benchmark U.S. crude was down 42 cents to $58.92 per barrel in electronic trading Wednesday. The contract fell $3.56 on Tuesday. Brent crude, the international benchmark, fell 27 cents to $64.28 per barrel in London, having dropped $4.47 the previous session.

The attack on oil producer Saudi Aramco’s processing facility in Abqaiq saw crude surge more than 14% on Monday, about as much as it did when Iraq invaded Kuwait before the 1991 Gulf War. The average national gasoline price in the U.S. was up 3 cents to $2.59 per gallon Tuesday, according to the AAA motor club, although GasBuddy said consumers could expect to see gas prices rise by 20 cents per gallon over the next week.

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