On Friday, the 15th of February, 2019, the crude oil price surged over 2 percent after a Saudi Arabia’s offshore oilfield had experienced with an outage, trimming the production further and boosting the investors’ optimism of a higher crude price.
In the intra-day trading, the International Brent Crude jumped 2.3 percent to $66.08 per barrel, its highest level since November 2018, while the US crude futures climbed 2.2 percent to $55.59 a barrel, and both US and UK crudes had been on their way to post a weekly gain of more than 6 percent.
The crude oil price was largely catapulted by a partial closure of the world’s largest offshore oilfield in Saudi Arabia’s Safaniya, a source familiar with the matter revealed on Friday, February the 15th. Since the Safaniya oil field had a production capacity of over 1 million barrels of crudes per day, the crude oil market now would have to engage with another concern relating to the availability of the crudes.
Expressing concerns over outage at the Safaniya offshore oil field, an analyst at the Price Future Group in Chicago, Phil Flynn said, “All of a sudden you don’t have to worry just about OPEC cuts. Now you have a problem with Saudi Arabia’s ability to actually produce as much oil.
” However, the source familiar to the subject matter could not reveal when the oil field would return to its full capacity.