Oil extends losses after Saudi Arabia to restore output by end-Sept

* Saudi Arabia to restore oil output by end Sept - energy
minister
* U.S. believes Saudi attacks came from southwest Iran -
official
* U.S. crude oil stocks rise 592,000 bbls - API

By Jessica Jaganathan
SINGAPORE, Sept 18 (Reuters) - Oil prices extended their
losses from the previous session on Wednesday, after Saudi
Arabia's energy minister said the Kingdom will restore lost oil
production by the end of the month.
But investors remained cautious of potential tension in the
Middle East after the United States said it believes the attacks
that crippled Saudi Arabian oil facilities last weekend
originated in southwestern Iran. Iran has denied involvement in
the strikes. Brent crude oil futures LCOc1 fell 36 cents, or 0.6%, to
$64.19 a barrel by 0005 GMT, after tumbling 6.5% the previous
session.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
43 cents, or 0.7%, to $58.91 a barrel, after sinking by 5.7% on
Tuesday.
"In view of the vulnerability of Saudi's supply chain and
the likelihood that such attacks could be repeated in the
future, we expect the market to reprice the geopolitical risk
premium in oil," BNP Paribas' Harry Tchilinguirian said in a
note.
"The oil market has so far been complacent about recent
developments in the Middle East. In our opinion, this will no
longer be the case going forward."
Saudi Arabia sought to reassure markets after the attack on
Saturday halved oil output, saying on Tuesday that full
production would be restored by month's end.
Energy Minister Prince Abdulaziz bin Salman said on Tuesday
that average oil production in September and October would be
9.89 million barrels per day and that the world's top oil
exporter would ensure full oil supply commitments to its
customers this month.
Saudi Aramco has informed some Asian refiners that it will
supply full allocated volumes of crude oil in October, albeit
with some changes.
Still, risks to oil prices remained after a U.S. official
said that Washington believes the attacks originated in
southwestern Iran. Relations between the United States and Iran have
deteriorated since U.S. President Donald Trump pulled out of the
Iran nuclear accord last year and reimposed sanctions on its oil
exports.
Tehran rejects the charges it was behind the strikes and on
Tuesday ruled out talks with Trump.
U.S. crude inventories rose by 592,000 barrels in the week
ended Sept. 13 to 422.5 million, data from industry group the
American Petroleum Institute showed on Tuesday. Analysts had
expected a decrease of 2.5 million barrels. Official U.S. government data will be released on Wednesday.

(
Editing by Jacqueline Wong)