CORRECTED-Oil prices settle after turbulent week as Saudi Arabia reassures on output

(Corrects to a 14% jump in prices on Monday, not plunge, in
paragraph 3)
* Return to full production pledged by end-September
* U.S. to impose more sanctions on Iran
* Cushing oil stocks at lowest since Oct 2018 - EIA

By Florence Tan
SINGAPORE, Sept 19 (Reuters) - Oil prices edged higher in
early Asian trade on Thursday after days of turbulence, with
markets soothed by Saudi Arabia's pledge to restore full
production by end-September at facilities knocked out in drone
and missile attacks last weekend.
Brent crude futures LCOc1 rose 8 cents to $63.68 a barrel
by 0139 GMT while U.S. West Texas Intermediate (WTI) crude
CLc1 was up 12 cents to $58.23 a barrel.
The steadying of nerves, after a 2% drop on Wednesday and a
14% jump on Monday, came after Saudi Arabia set out the timeline
to full operation and also said it had managed to restore
supplies to customers at levels prior to the attacks by drawing
from its oil inventories. Saudi Arabia, the world's leading oil exporter, has said the
crippling attack on its oil sites was "unquestionably sponsored"
by bitter regional rival Iran. U.S. President Donald Trump said
there were many options short of war with Iran and added that he
had ordered the U.S. Treasury to "substantially increase
sanctions" on Tehran. "Prices may have found equilibrium for now," said Michael
McCarthy, chief markets analyst at CMC Markets in Sydney. Quick
recovery in Saudi oil production would confirm disruption could
be temporary, he said.
Meanwhile oil analytics firm Kayrros estimated Saudi Arabia
lost about 3.4 million barrels per day (bpd) of oil output after
crude oil inventories plunged nearly 10 million barrels as of
Sept. 16 compared with pre-attack levels.
Still, the head of the International Energy Agency said on
Wednesday it does not see a need to release emergency oil stocks
as markets are well supplied. While tensions in the Middle East remained elevated, the
White House's response on Wednesday to Saudi producing evidence
that it said implicated Iran in the attacks pointed to a more
measured approach in handling the region's issues, said McCarthy
at CMC Markets.
Separately, weekly data from the Energy Information
Administration on U.S. oil inventories provided a mixed
snapshot.
Crude oil stockpiles at the world's largest oil producer
rose by 1.1 million barrels last week against analysts'
expectations for a drop of 2.5 million barrels.
However, stocks in Cushing, Oklahoma, the delivery point for
benchmark futures, fell to the lowest since October 2018.
EIA/S