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Oil Futures Retreat, Settle Sharply Lower

Crude oil prices retreated on Tuesday after having skyrocketed in the previous session following the drone attack on Saudi Arabian oil facilities.

Oil prices dropped in today's session, reacting to news that Saudi Arabia has restored about half the production lost in the attacks last weekend.

Saudi Arabia's energy minister Prince Abdulaziz bin Salman also reportedly said the kingdom expects crude output to return to normal by the end of this month.

West Texas Intermediate Crude oil futures for October plunged $3.56, or 5.7%, to $59.34 a barrel.

On Monday, oil prices soared more than $8 a barrel after the devastating attacks on Saudi oil facilities that knocked out 5% of global crude supply.

U.S. President Donald Trump has the U.S. prepared to respond militarily but has stopped short of definitively blaming Iran for the attacks.

Yemen's Houthi rebels have reportedly claimed responsibility for the attacks.

A report released by the Energy Information Administration (EIA) today said crude oil production from seven major U.S. shale plays is forecast to climb by 74,000 barrels a day in October to 8.843 million barrels a day.

Meanwhile, traders were also looking ahead to the weekly crude inventory data from the American Petroleum Institute (API) and EIA.

The API will release its weekly report later on Tuesday, while EIA's data is due at 10:30 AM ET on Wednesday.

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