Oil price in haze/ Doubts about Saudi claim to half oil exports

2019-09-16 09:52:03

Many of European and American news agencies are consecutively reporting that half of Saudi’s oil exports have been halted following the Yemeni army's drone strikes. These news outlets are referring to their Saudi sources which is a bit strange!

In a statement carried by the Saudi Press Agency (SPA) on Sunday, Energy Minister Prince Abdulaziz bin Salman acknowledged that the attacks on Aramco refineries in Abqaiq and Khurais, east of Saudi Arabia, had cut the state oil giant’s crude oil supply by around 5.7 million barrels per day, or about 50 percent of its output.

But as Saudi production and export centers, the largest of which are located in al-Shabaa, Ras al-Tawrana, al-Ainba and al-Jubail, have not been harmed and are probably having more than a billion barrels of Saudis for export in their dispersed tanks, it seems that Saudis are playing with the oil market.

Since most Saudi oil buyers are Europeans and some Asian countries, and as the Saudis are incompetent to confront Yemen army’s drones and missiles, they are actually trying to scare the world in order that they will help them fight Yemen army and Ansar-Allah, because otherwise, they pretend that their refineries will suffer oil shortage.

A historian and journalist from Belgium told PressTV that the Saudis actually underestimated the Yemenis and did not take into account the nation’s “popular will” to respond to the kingdom’s indiscriminate bombing campaign.

“I think that one of the major ... mistakes that the Saudis made is the age-old problem of underestimating the enemy. The Saudis basically went to this conflict four and a half years ago with the mentality of being ... home by Christmas,” Brecht Jonkers Michael said.

The Saudis, he added, only compared the quality and quantity of their weaponry — which is the biggest as well as the most expensive and technologically advanced in the Arab world to that of Yemen — the poorest nation in the world.

The journalist also analyzed the Yemeni operation as “massively successful” as domestically-produced drones penetrated into Saudi Arabia’s defenses and traveled hundreds of miles in order to hit the biggest oil refinery in the world.

Such attacks, he said, are shattering the morale among Saudi soldiers.

After spending billions of dollars on advanced weapons, Riyadh's leaders seem to be ashamed not being able to defeat such a poor country (Yemen) and are playing with public opinion.

Following the drone strikes, US President Donald Trump, a stalwart supporter of the Riyadh-led war on Yemen, spoke on the phone with Saudi Crown Prince Mohammed bin Salman, who has been leading the military campaign in his capacity as the Saudi defense chief.

Trump offered his administration’s support for what he called “Saudi Arabia’s self defense,” saying the attacks on Saudi oil facilities had a negative impact on the US and global economies.

Bin Salman, for his part, said he was “willing and able to confront and deal with” what he described as a “terrorist aggression.”

Yemeni fighters regularly target positions inside Saudi Arabia in retaliation for the Saudi-led offensive, which began in March 2015 in an attempt to reinstall the country's Riyadh-allied former regime and crush the Houthis.

The US-backed military aggression, coupled with a naval blockade, has killed tens of thousands of Yemenis, destroyed the country’s infrastructure and led to a massive humanitarian crisis.

In his latest reaction Doland Trump on his twitter stated:

“Based on the attack on Saudi Arabia, which may have an impact on oil prices, I have authorized the release of oil from the Strategic Petroleum Reserve, if needed, in a to-be-determined amount… sufficient to keep the markets well-supplied. I have also informed all appropriate agencies to expedite approvals of the oil pipelines currently in the permitting process in Texas and various other States.”

BS

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