Drone Strikes Impact Saudi Oil Facilities

Saudi races to restore oil supply after strike blamed on Iran

Saudi Arabia's state-owned company Aramco is the world's biggest oil producer, generating 10% of the world's oil, but it is also one of the world's most profitable businesses.

Crude oil prices have shot up 9.5% to $60 after trading opened Sunday evening in NY, a dramatic increase that comes after a weekend attack on Saudi Arabia's oil infrastructure.

U.S. President Donald Trump said he approved the release of oil from the U.S. Strategic Petroleum Reserve (SPR) if needed in a quantity to be determined due to the attack.

Trump also is apparently trying to ward off concerns by tweeting "PLENTY OF OIL!"

"Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world's energy supply", Pompeo said in a Twitter post on Saturday.

The US has blamed Iran for other attacks on oil supplies in the region this year, amid continuing tension following President Donald Trump's decision to reinstate sanctions after abandoning the landmark worldwide deal which limited Tehran's nuclear activities.

The attack over the weekend could disrupt an estimated 5.7 million barrels of oil per day, or more than 5% of the world's daily supply.

Will rising political risk help buoy crude oil prices as global demand wanes? But, you know, that may be sidelined now with these strikes, especially if the U.S.is seen as blaming Iran for these attacks in Saudi Arabia.

The conflict has been labelled a "proxy" war in which Saudi Arabia and Iran back the opposing sides. Trump, however, has been briefed by a few warring enthusiasts in Congress suggesting that any assault on Iran can be brought within the purview of the 2001 Authorization for Use of Military Force (AUMF). He implicated Iran, which is waging a proxy war in Yemen by funding the Houthi rebels in their conflict with the old regime backed by an global coalition led by the Saudis. "Even if exports resume in the next 24-48 hours, the image of invulnerability has been altered", Helima Croft, global head of commodity strategy at RBC Capital Markets, told Reuters. The Brent crude oil prices had closed on Friday, slightly higher than the $60 per barrel.

The Washington Post newspaper said the U.S. government believed that 15 buildings at Abqaiq had been damaged on the west-northwest sides, not the southern sides facing Yemen.

On Saturday, CEO Amin Nasser said that "work is underway" to restore production, but the incident could affect investor confidence ahead of Aramco's stock market debut.

Yemen's Iran-backed Houthi rebels claimed responsibility for the attack, but USA officials say Iran is responsible.

"The Secretary-General condemns Saturday's attacks on Aramco oil facilities in the Eastern Province in the Kingdom of Saudi Arabia claimed by the Houthis", according to a statement from spokesman Stephane Dujarric.

The minister said the attacks, however, did not have any impact on the supply of electricity and water supplies from the fuel, or on the supply of the domestic market of hydrocarbons.

The attack is the single worst sudden disruption to the oil market ever, and senior members of the United States government are laying the blame on Iran.

Iranian President Hassan Rouhani has said prevention of United States "aggression" is the only way to ensure regional security.

In the near term, he says, this won't reduce the amount of oil available on the market, because there is large volume of oil in storage in Saudi Arabia and other countries.

But the attacks on these two installations will mean the loss of about 5% of the global oil supply, which could increase the price of oil globally.

The attack comes after US President Donald Trump said a meeting with Iranian President Hassan Rouhani was possible at the United Nations General Assembly in NY this month. It remains unclear how King Salman and his assertive son, Crown Prince Mohammed bin Salman, will respond to an attack targeting what analysts describe as the heart of the Saudi oil industry.

Iranian Foreign Ministry spokesman Abbas Mousavi dismissed the USA allegation that it was responsible as "pointless".

Related News:

  • 10-year-old Texas girl dies from brain-eating amoeba infection

    10-year-old Texas girl dies from brain-eating amoeba infection

    Lily Mae "fought the good fight", said her aunt, Loni Yadon, and cousin, Wendy Scott, WFAA reported . Soon after, she came down with what seemed like a common viral infection, a headache and fever.
    Greek lead astronomer finds water on exoplanet twice the size of Earth

    Greek lead astronomer finds water on exoplanet twice the size of Earth

    A little known planet that is about 110-light-years away from our solar system might be able to host life, a new study has found . As Tsiaras pointed out at the press conference, conditions on K2-18b are likely "more hostile" compared to Earth.
    Google Maps shows sunken vehicle  where missing man’s body was found

    Google Maps shows sunken vehicle where missing man’s body was found

    Mr Moldt called his girlfriend at about 21:30, telling her he would be home soon, but was never seen or heard from again. While he was apparently not a frequent drinker, he did have several drinks in the club on the night of his disappearance.
  • African leaders eulogise Mugabe at state funeral

    African leaders eulogise Mugabe at state funeral

    They clung to it from the airport to One Commando Barracks and all the way to Blue Roof. "Mugabe had no doctor looking after him". On the other hand, Mugabe's death has made some Zimbabweans question what Mnangagwa has achieved in his two years in power.
    China appreciates Solomon Islands' break of

    China appreciates Solomon Islands' break of "diplomatic relations" with Taiwan

    The move is yet another diplomatic blow for Taiwan, which has seen its few remaining allies steadily whittled down by Beijing. The petition asks the Bundestag to ask the German Cabinet to establish formal relations with the Republic of China (Taiwan).
    Former world number one Kim Clijsters to return to tennis in 2020

    Former world number one Kim Clijsters to return to tennis in 2020

    Following back-to-back titles in NY in 2009 and 2010, she also added the 2011 Australian Open to her list of honours. She will require to feature in three tournaments or earn 10 ranking points to re-establish a ranking.
  • Browns DE Smith to play following girlfriend's death

    Browns DE Smith to play following girlfriend's death

    Giving the ball to Odell Beckham Jr . might have been their first thought, but there was one big problem: he wasn't on the field. Baker Mayfield completed 19 of 35 passes for 325 yards and the touchdown to Beckham, who had six catches for 161 yards.
    GM will recall 3.5 million pickups and SUVs to fix brake issue

    GM will recall 3.5 million pickups and SUVs to fix brake issue

    The recall comes 10 months after NHTSA opened its investigation and over two months after the recall was announced in Canada. If you're an owner of one of those cars, take it to the dealer to get the brake control module recalibrated at no cost.
    Trump administration can begin enforcing new asylum restrictions, Supreme Court rules

    Trump administration can begin enforcing new asylum restrictions, Supreme Court rules

    The change will affect non-Mexican migrants trying to enter through the United States southern border. He said relations between the two countries were very good and Trump recognized Mexico's efforts.
  • Rocker Ric Ocasek, frontman of The Cars, dead at 75

    Rocker Ric Ocasek, frontman of The Cars, dead at 75

    Bass player and vocalist Benjamin Orr , who grew up in Lakewood and Parma, died in October 2000 of pancreatic cancer. In announcing the separation a year ago , Porizkova said that their family is "a well-built auto ".
    Kevin Hart to need 'round-the-clock' medical support

    Kevin Hart to need 'round-the-clock' medical support

    Eniko showed up to the hospital and gave an update on his condition , saying he was "going to be fine". Meanwhile, Hart's wife, Eniko Hart , has remained by his side since the almost fatal crash.
    Google Pixel 4, 4XL may launch on Oct 15

    Google Pixel 4, 4XL may launch on Oct 15

    Finally, the video mentions a Sony IMX481 telephoto sensor, Sony IMX363 standard sensor, and Sony IMX520 front-facing sensor. The video also showed the Display settings where a new Styles & Wallpapers is added just above the Dark mode toggle.

Most liked

Restore normal life to Kashmir, India's top court tells government
Prime Minister Khan was requested to tone down his verbal attacks against his Indian counterpart Modi, the report said. Imran Khan said PTI government has introduced a "New Pakistan" in which rule of law is supreme.

Serena Williams Finally Opens Up About Meghan Markle
For every item bought, one will be donated to the charity which Meghan is patron of. She's really comfortable in the world of fashion [and] calling in some favours.

Duane ‘Dog’ Chapman ‘under doctor’s care’ after reported heart emergency
Chapman became known to television audiences via " Dog the Bounty Hunter ", a reality TV series that aired from 2004-2012. Dog said his final goodbye to his life partner during her second and last memorial service in Aurora, Colorado in July .

Netflix Acquires Exclusive Rights to ‘Seinfeld’
This is good news for Seinfeld fans and Netflix users who are sad to see content from Disney, Marvel, and NBC saying goodbye. Amazon had the streaming rights in most of the foreign territories that will be picked up by Netflix, the report said.

1,300 still missing in hurricane-hit Bahamas
Bahamians are beginning to tackle a daunting cleanup a week after Hurricane Dorian devastated the archipelago's northern islands. Its swells could still affect the coasts of Florida, Georgia, South Carolina and North Carolina in the coming days.

Johnson the Brexit 'Hulk' finally meets EU's Juncker
One rebel, Sam Gyimah - a rising star in former PM Theresa May's government - joined the Liberal Democrats on Saturday. Party leader Jo Swinson said Article 50, which triggered Brexit , would be revoked if she becomes prime minister.

Iraq denies links to drone attack on Saudi oil plants
The US government said it's prepared to dip into the Strategic Petroleum Reserve if necessary to offset any market disruption.

UP among world's top 500 universities
Since 2012, through the total number of entries from the country went up from 49 in 2018 to 56 this year. There are estimated to be more than 26,000 universities in the world.

Twitter deletes 'death threat' from Texas lawmaker who targeted Beto O'Rourke
Many cited President Donald Trump's divisive rhetoric on immigrants and people of color for inspiring the act . It began on the stage of the third Democratic presidential candidate's debate Thursday night.

Meghan Markle's Friend Misha Nonoo (Finally) Opened Up About Their Relationship
She added, "As women, it is 100 per cent our responsibility, I think, to support and up-lift each other". The capsule line includes the shirt, plants, a blazer, a dress, and a purse.

Samsung Galaxy S11 could have a key iPhone 11 camera feature
The primary camera of the phone has a 48MP sensor whereas the ultra-wide-angle lens and depth camera sports 8MP and 5MP sensors. Right now, it only supports the Note 10 series but Samsung says it will add support for more devices in the coming days.

Trump Praises China's 'Big Move' in Exempting Tariffs on Some US Goods
The slight reprieve may be little comfort to American businesses that have had to struggle with trade uncertainties. The gestures appear meant to reduce tensions ahead of the October negotiations over trade and technology.

New 'SNL' cast member from Mechanicsburg used racist slur in 2018 video
TV Line reports that Bowen Yang , Chloe Fineman , and Shane Gillis will join the cast when it returns on September 28. She has also appeared on popular television shows like Jane the Virgin , Search Party and Grown-ish.

Antonio Brown allegations not being investigated, Pennsylvania district attorney clarifies
Furthermore, Rosenhaus said the civil suit filed by Brown's former trainer, who accused him of raping her, is a " money grab ". However, the scrutiny over what the New England Patriots decide to do with Antonio Brown the person will only increase.

Suspect in custody after workplace stabbing in Tallahassee
The suspect was identified as Antwann Brown, an employee at Dyke Industries, a building materials company in an industrial park. Tallahassee Memorial HealthCare hospital said it received five patients, down from the earlier reported number of six.