Oil prices dropped after an update by the Saudi government that normal crude production levels could be regained within two or three weeks’ time, faster than anticipated. Lost output is currently being mitigated by barrels from America’s Strategic Petroleum Reserve and additional production by Saudi Aramco.
U.S. WTI lost more than 5% on the day to regain pre-Aramco-attack levels of $59 per barrel. While the effects of the attack has been minimal on oil exports, due to ample reserves, the risks that threaten the global supply buffer remain due to the possibility of future attacks.
In Asia, the Shanghai stock index shed 1.7%, breaching the psychological 3,000-point mark after China’s central bank kept rates unchanged despite deteriorating economic data. Investors were surprised by the move are now readjusting to the scenario that the government may not respond aggressively in the short-term.
UK PM Boris Johnson is the subject of a three-day hearing as the Supreme court opened proceedings to decide on the appeal relating to the PM’s decision to suspend parliament recently, which Brexit opponents argue was an act of abuse of power. Losing this case could force Mr. Johnson to reinstate parliament and deal a serious blow to his no-deal Brexit plans.