Saudi Arabia Shuts Pipeline to Bahrain After Oil Outage: Trade Sources

Marco Green
September 20, 2019

The United States administration is discussing "a serious military response" to the attacks on oil facilities in Saudi Arabia, The Washington Post daily reported on Monday.

But many other countries receive more - India and Indonesia are considered particularly dependent on oil imports - and US producers could benefit from that, especially if Saudi oil fields are offline long term or if another attack depresses its capacity further. The weekend drone attack on one of the world's largest crude oil processing pl.

"A loss of 5 million barrels per day of supplies from Saudi Arabia can not be met for long by existing inventories and the limited spare capacity of the other OPEC+ group members".

'The Foreign Secretary has spoken to Secretary of State Mike Pompeo and will be speaking to other worldwide partners on this'. And from Washington, D.C., we speak with Medea Benjamin, co-founder of CodePink and author of "Inside Iran: The Real History and Politics of the Islamic Republic of Iran".

"I'm somebody that would like not to have war", Trump said.

Saudi Arabia and Iran have been enemies for decades and are fighting a number of proxy wars.

While Iran has denied blame for the attacks, its Yemeni allies have promised more strikes to come.

"The question is how long it takes for the supply to get back online", said Esty Dwek, head of global market strategy at Natixis Investment Managers.

Trump was apparently referring to Iran's downing of a United States unmanned surveillance drone in June.

US officials say they believe the attacks came from the opposite direction, possibly from Iran itself rather than Yemen, and may have involved cruise missiles.

Oil prices soared as much as 20% on Monday, with Brent crude posting its biggest intra-day percentage gain since the Gulf War in 1991.

Trump's "locked and loaded" comment mirrors similar remarks he made following Iran shooting down a USA military surveillance drone in June.

"The only option for the Saudi government is to stop attacking us", Sarei added.

Faced with a possible disruption to the US energy supply, Trump said Sunday that he has authorized the release of oil from the U.S.

Such intelligence shared with the Saudis has long lacked the kind of detail that would allow the Saudi-led coalition to pinpoint Houthi leaders or their networks, which the United States has long maintained are supported by Iran.

"In recent months the oil market has largely discounted geopolitical risk in the Middle East and chosen to focus on the mounting worries that the U.S". With Trump already appearing to be supporting Saudi Arabia, it's another thing altogether to be awaiting the Kingdom's cue.

Al-Maliki did not elaborate further and said the results of the investigation would be made public to the media when complete.

Russia's Foreign Ministry, while expressing "grave concern" about the attack, warned against putting the blame on Iran, saying that plans of military retaliation against Iran would be unacceptable.

Other reports by Click Lancashire

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