— This is the script of CNBC's news report for China's CCTV on September 18, 2019, Wednesday.
Let's have a look over the performance in crude oil market, international oil price dropped soon after Saudi Aramco showed its positive attitude to restoring output.
Till the bell Tuesday, Light, sweet crude oil prices on the New York Mercantile Exchange for October delivery fell 5.66% to $59.34/bbl, London Brent for Nov delivery lost 4.47 dollars to $64.55/bbl, with a 6.48% decline. At the same time, we can see that in the U.S. stock market
with energy stocks fell from their gains and the eased market sentiment, U.S. stocks closed higher.
However, what we can see from this 5-day curve chart is that the international oil prices are still well above their pre-attack levels, and geopolitical risk premiums remain in the oil market
Currently, Saudi Aramco's crude oil supplies and output are resuming in an orderly manner, but who is behind this attack is still in controversial, and that leaves some uncertainties to the relationship between U.S. and Iran and the future development of geopolitics. Experts believe that geopolitical risk could bring a longer term impact to crude oil market, compared to Saudi's output.
Apart from that uncertainty, because crude oil marker lacks upside support at the moment, demand weakened by the slowdown in global economy, and it is a weak demand season recently, so senior trader Anthony Grisanti told CNBC that he believes the oil price will be volatile in short term and he doesn't see big gain in it.
Saudi will restore its production completely till the end of this month, before that, investors will still wait and see, and the crude oil inventory data that will be released by the U.S. Wednesday also draws close attention of markets, which impacts oil price directly.