Oil prices fell Tuesday as talk of possible retaliation for the attack on Saudi Arabia’s oil facilities eased a bit and the Saudis restored some of the production, but the impacts on the U.S. and world markets remain a moving target, an analyst said.

If lingering problems keep oil prices in the mid-$60 per barrel range or higher, U.S. companies, including in Colorado, will see production increase, said Bernadette Johnson, vice president of strategic analytics with Enverus, which provides data and intelligence to energy companies.

“This is still being priced as a temporary event. What happens from now on with the price, I think a lot of it will depend on is there additional escalation between Saudi Arabia and Iran and, of course, Yemen,” Johnson said. “If we do see any kind of commentary that points to any kind of retaliation, bombing or attacks, then prices will go up again. It would just further destabilize the region. So much crude production comes out of that part of the world, the crude market would respond.”

However, if Saudi Arabia restores its production and there’s no talk of the possibility of war, Johnson said “we should expect those prices to inch back down over the coming weeks.”

Johnson said higher prices would result in more activity across the country and in Colorado’s Denver-Julesburg basin, the state’s busiest oil and gas play. “Colorado’s crude production continues to grow and Colorado’s pricing is directly tied to (West Texas Intermediate) pricing, which is tied to international crude prices.”

The drone and missile strike Saturday on Saudi Arabia’s Abqaiq oil processing plant and its Khurais oil field interrupted the equivalent of about 5% of the world’s daily supply. The Abqaiq plant processes 70% of the country’s daily production of about 9.75 million barrels of crude oil.

The Associated Press reported Tuesday that Saudi Arabia’s energy minister said more than half of the country’s daily crude oil production had been recovered and production capacity at the targeted plants would be fully restored by the end of the month.

Houthi rebels in Yemen, who are fighting a civil war against a Saudi-led military coalition, claimed responsibility for the strike, but the Trump administration blames Iran, an ally of the Houthis. Trump has said the U.S. is “locked and loaded” for war if needed, but that he would like to avoid war.

Oil prices dropped about 6% Tuesday after jumping more than 10% the day before.

“Some of the pricing that came down today was the result of some of Trump’s comments about really not wanting a war,” said Johnson. “I also think the ability of Saudi Arabia to bring back online 2 million of barrels (a day) helped kind of quiet the market.”

Oil prices, which had been hovering around $55 per barrel, bounced Monday between $63 and $64 before settling just under $63.

The U.S. is the world’s largest producer of crude oil and for one month this year — June — displaced Saudi Arabia as the largest exporter of crude, Johnson said.

The latest figures by the U.S.Energy Information Administration show a daily domestic production of 12.4 million barrels. In June, Colorado produced nearly 15.5 million barrels of oil, according to the EIA. It is the fifth-biggest oil producing state in the country.

But Johnson said the U.S. could not fill the gap left by Saudi Arabia’s losses. The country’s overall production is just 11% to 12% of what the world uses, she said.

In addition, the U.S. unconventional oil shale fields and the nature of how the oil is drilled mean the country “is not able to just open the flood gates, so to speak,” Johnson said.

“The way the U.S. unconventional production works, it takes a thousand rigs and they’re drilling thousands of wells per year to maintain and grow production,” Johnson said. “That’s very different than conventional production worldwide, where if you are Saudi Arabia you have six or seven large fields and those fields are producing in some cases over a million barrels each. You have this concept of spare capacity where you can literally open up the spigot and bring on more crude very quickly.”

And some of this country’s major basins, including the red-hot Permian in West Texas and southeastern New Mexico, have bottlenecks due to a lack of pipelines and infrastructure, Johnson added.