Post by Admin on Sept 17, 2019 4:40:19 GMT
Attacks halve Saudi oil production;
Global oil prices are experiencing their biggest price surge since 1991 after attacks on the world's largest oil refinery in Saudi Arabia in the early morning of Saturday. "Iran-allied Houthi rebels in neighboring Yemen claimed credit for the attack, saying they sent 10 drones to strike at important facilities in Saudi Arabia's oil-rich Eastern Province," the Wall Street Journal reported shortly after black smoke filled the air over Saudi Arabia's Abqaiq processing plant.
The quick takeaway from all this: "The strikes shut down half of the kingdom's crude production on Saturday," the Journal writes, "potentially roiling petroleum prices and demonstrating the power of Iran's proxies."
The loss of 4.9 million barrels/day — 5% of global crude output — sent prices up 19%, the largest increase since the 1991 Gulf War, according to Reuters. The Associated Press goes even further, calling the weekend attacks "the worst disruption to world supplies on record."
Houthis: more attacks are coming: "We assure the Saudi regime that our long arm can reach any place we choose and at the time of our choosing," Houthi spokesman Yahya Sarea tweeted. "We warn companies and foreigners against being near the plants that we struck because they are still in our sights and could be hit at any moment."
The quick takeaway from all this: "The strikes shut down half of the kingdom's crude production on Saturday," the Journal writes, "potentially roiling petroleum prices and demonstrating the power of Iran's proxies."
The loss of 4.9 million barrels/day — 5% of global crude output — sent prices up 19%, the largest increase since the 1991 Gulf War, according to Reuters. The Associated Press goes even further, calling the weekend attacks "the worst disruption to world supplies on record."
Houthis: more attacks are coming: "We assure the Saudi regime that our long arm can reach any place we choose and at the time of our choosing," Houthi spokesman Yahya Sarea tweeted. "We warn companies and foreigners against being near the plants that we struck because they are still in our sights and could be hit at any moment."
Worth noting: We could learn more soon about the attack vector, since AP reports today "U.S. officials said additional devices, which apparently didn't reach their targets, were recovered northwest of the facilities and are being jointly analyzed by Saudi and American intelligence."
Given the extent of disruption to supplies, Perry's Energy Department announced this morning that the U.S. "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets." And that will be helpful since two Saudi Aramco sources tell Reuters "it might take months for Saudi oil production to return to normal" when "Earlier estimates had suggested it could take weeks."
That U.S. decision to dangle the reserves option eased prices today, since, at one point over the weekend, Brent crude had jumped to $71.95 a barrel. This morning it has dropped back a bit to $66.26.
U.S.: It's wasn't the Houthis, it was Iran. That's what President Donald Trump said*, and so did Secretary of State Mike Pompeo, and Energy Secretary Rick Perry.
The White House released satellite imagery illustrating "19 points of impact" at the Aramco facilities, and U.S. officials allege the imagery shows "the attacks had come from a west-north-west direction — not Houthi-controlled territory in Yemen, which lies to the south-west of the Saudi oil facilities," the BBC reports today, embedding a few of the images. "A close-up image of damaged tanks at the Abqaiq processing plant (included above) appeared to show impact points on the western side."
Unnamed U.S. officials allege armed drones and cruise missiles did the damage across Abqaiq and Khurais oilfield, a bit to the west, according to the New York Times. "There's no doubt that Iran is responsible for this. No matter how you slice it, there's no escaping it. There's no other candidate," said one U.S. official who wouldn't give his name to Reuters on Sunday.
Notable countries not yet pointing the finger at Iran: the UK, as well as Russia, and China.
Iran's reax? Accuse U.S. officials of "max[imum] deceit," as Foreign Minister Javad Zarif tweeted on Sunday, writing, "US & its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster. Accepting our April '15 proposal to end war & begin talks may."
So what can Trump do? He "has few options" and he's working with a "depleted national-security team," the WSJ reports this morning in its now-what take.
Sen. Lindsey Graham, R-S.C., wants to see some war plans against Iran, he tweeted Saturday: "The Iranian regime is not interested in peace - they're pursuing nuclear weapons and regional dominance. It is now time for the U.S. to put on the table an attack on Iranian oil refineries if they continue their provocations or increase nuclear enrichment."
Graham's Democratic colleague, Sen. Bob Menendez, was angry, too, over the attacks. But he stopped short of wanting to see a plan for military action, tweeting Sunday, "I strongly condemn the brazen attacks on Saudi infrastructure and territory. Despite some ongoing policy differences with the kingdom, no nation should be subjected to these kinds of attacks on it soil and against its people."
Meanwhile, Iranian forces just seized another ship in the Persian Gulf, this time "for allegedly smuggling 250,000 litres of diesel fuel to the United Arab Emirates," Reuters reports from Dubai. According to Iran's semi-official Students News agency ISNA, the ship "was detained near Iran's Greater Tunb island in the Persian Gulf...the crew have been handed over to legal authorities in the southern Hormozgan province." Tiny bit more to that
developing story, here. Given the extent of disruption to supplies, Perry's Energy Department announced this morning that the U.S. "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets." And that will be helpful since two Saudi Aramco sources tell Reuters "it might take months for Saudi oil production to return to normal" when "Earlier estimates had suggested it could take weeks."
That U.S. decision to dangle the reserves option eased prices today, since, at one point over the weekend, Brent crude had jumped to $71.95 a barrel. This morning it has dropped back a bit to $66.26.
U.S.: It's wasn't the Houthis, it was Iran. That's what President Donald Trump said*, and so did Secretary of State Mike Pompeo, and Energy Secretary Rick Perry.
The White House released satellite imagery illustrating "19 points of impact" at the Aramco facilities, and U.S. officials allege the imagery shows "the attacks had come from a west-north-west direction — not Houthi-controlled territory in Yemen, which lies to the south-west of the Saudi oil facilities," the BBC reports today, embedding a few of the images. "A close-up image of damaged tanks at the Abqaiq processing plant (included above) appeared to show impact points on the western side."
Unnamed U.S. officials allege armed drones and cruise missiles did the damage across Abqaiq and Khurais oilfield, a bit to the west, according to the New York Times. "There's no doubt that Iran is responsible for this. No matter how you slice it, there's no escaping it. There's no other candidate," said one U.S. official who wouldn't give his name to Reuters on Sunday.
Notable countries not yet pointing the finger at Iran: the UK, as well as Russia, and China.
Iran's reax? Accuse U.S. officials of "max[imum] deceit," as Foreign Minister Javad Zarif tweeted on Sunday, writing, "US & its clients are stuck in Yemen because of illusion that weapon superiority will lead to military victory. Blaming Iran won't end disaster. Accepting our April '15 proposal to end war & begin talks may."
So what can Trump do? He "has few options" and he's working with a "depleted national-security team," the WSJ reports this morning in its now-what take.
Sen. Lindsey Graham, R-S.C., wants to see some war plans against Iran, he tweeted Saturday: "The Iranian regime is not interested in peace - they're pursuing nuclear weapons and regional dominance. It is now time for the U.S. to put on the table an attack on Iranian oil refineries if they continue their provocations or increase nuclear enrichment."
Graham's Democratic colleague, Sen. Bob Menendez, was angry, too, over the attacks. But he stopped short of wanting to see a plan for military action, tweeting Sunday, "I strongly condemn the brazen attacks on Saudi infrastructure and territory. Despite some ongoing policy differences with the kingdom, no nation should be subjected to these kinds of attacks on it soil and against its people."
Meanwhile, Iranian forces just seized another ship in the Persian Gulf, this time "for allegedly smuggling 250,000 litres of diesel fuel to the United Arab Emirates," Reuters reports from Dubai. According to Iran's semi-official Students News agency ISNA, the ship "was detained near Iran's Greater Tunb island in the Persian Gulf...the crew have been handed over to legal authorities in the southern Hormozgan province." Tiny bit more to that
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