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Saudi Arabia has apparently shut down half its crude oil production after the world's largest oil processing facility was attacked in a drone strike. The local Houthi rebels have claimed responsibility. But do not be surprised to see the Saudi's blame Iran for this attack.
The Saudi's have lately promised that if it can't export its oil then "no one will".
Go fill up your tanks people. Gasoline prices are going up as a result of this.
Also, for active stock traders, this is likely to be good news for the American fraking sector, which has been struggling as of late. Most of those companies are likely to see their stocks rise Monday on this news.
Further, the tensions between Saudi Arabia and Iran are ominous indeed. We have been waiting or decades for a real blowup in that region between these powers. Hopefully it does not happen. But it appears that all the pieces are in place.
Are you sure Saudi Arabia made that "promise"?? Sounds more like Iran.
It's worse than 1/2 their production -- it's their major shipping facility. Now it has to ship through the Straight of Hormus (that's where Iran has been attacking ships).
The height of the price spike will depend on how much we know about the extent of the damage and how long it will take to repair. An absence of information will lead traders to assume the worst.
The Abqaiq crude processing plant is the single most important facility in the Saudi oil sector. In 2018 it processed about half of the kingdom’s crude oil production, according to a prospectus published in May for the state oil company’s first international bond. That’s roughly 5 million barrels a day, or one in every 20 barrels of oil used worldwide.
Abqaiq is more important to the Saudi oil sector than the kingdom’s Persian Gulf export terminals at Ras Tanura and Ju’aymah, or the Strait of Hormuz that links the Gulf to the Indian Ocean and the high seas. Crude can be diverted away from the Persian Gulf and Hormuz by pumping it across the country to the Red Sea through the East-West oil pipeline. But it cannot bypass Abqaiq. The East-West pipeline starts at Abqaiq and output from the giant Ghawar, Shaybah and Khurais fields is all processed there, so an attack on the facility will impact crude flows to export terminals on both coasts.
The latest attack comes just months after drones, allegedly launched from Iraq by Yemen’s Houthi rebels, targeted pumping stations on the oil pipeline. The damage caused by that earlier attack was minimal, but highlighted the vulnerability of Saudi Arabia’s oil infrastructure, even when located hundreds of miles from the country’s borders.[b]BNN Bloomberg - Canada[/i]
It's incredible that there are people here who don't understand the Iranian War against the Saudi's.
They fund and arm the Houthies in Yemen -- even the UN "get's it", but the Crazy Leftists in the USA and so pro Iran and China that they would see this Country fail if it was aid the Theocracy in Iran and Dictatorship in Communist China. It's mind boggling.
The USA won't be impacted by any oil shortage -- most of the KSA production goes to China & Japan.
Prices or set by World Market - so they surely will increase and soon.
I've investing in the Petroleum area for many decades - been out of "oil stocks" for many years and do well with what what is not effected by the price of oil. Delivery systems pay good dividends and deliver no matter what the price of oil is.
Are you sure Saudi Arabia made that "promise"?? Sounds more like Iran.
It's worse than 1/2 their production -- it's their major shipping facility. Now it has to ship through the Straight of Hormus (that's where Iran has been attacking ships).
The height of the price spike will depend on how much we know about the extent of the damage and how long it will take to repair. An absence of information will lead traders to assume the worst.
The Abqaiq crude processing plant is the single most important facility in the Saudi oil sector. In 2018 it processed about half of the kingdom’s crude oil production, according to a prospectus published in May for the state oil company’s first international bond. That’s roughly 5 million barrels a day, or one in every 20 barrels of oil used worldwide.
Abqaiq is more important to the Saudi oil sector than the kingdom’s Persian Gulf export terminals at Ras Tanura and Ju’aymah, or the Strait of Hormuz that links the Gulf to the Indian Ocean and the high seas. Crude can be diverted away from the Persian Gulf and Hormuz by pumping it across the country to the Red Sea through the East-West oil pipeline. But it cannot bypass Abqaiq. The East-West pipeline starts at Abqaiq and output from the giant Ghawar, Shaybah and Khurais fields is all processed there, so an attack on the facility will impact crude flows to export terminals on both coasts.
The latest attack comes just months after drones, allegedly launched from Iraq by Yemen’s Houthi rebels, targeted pumping stations on the oil pipeline. The damage caused by that earlier attack was minimal, but highlighted the vulnerability of Saudi Arabia’s oil infrastructure, even when located hundreds of miles from the country’s borders.[b]BNN Bloomberg - Canada[/i]
It's incredible that there are people here who don't understand the Iranian War against the Saudi's.
They fund and arm the Houthies in Yemen -- even the UN "get's it", but the Crazy Leftists in the USA and so pro Iran and China that they would see this Country fail if it was aid the Theocracy in Iran and Dictatorship in Communist China. It's mind boggling.
The USA won't be impacted by any oil shortage -- most of the KSA production goes to China & Japan.
Prices or set by World Market - so they surely will increase and soon.
I've investing in the Petroleum area for many decades - been out of "oil stocks" for many years and do well with what what is not effected by the price of oil. Delivery systems pay good dividends and deliver no matter what the price of oil is.
The $150 Billion that Obama gave the Iranians, much in the form of currency, is surely being used by the Iranians to fund these terrorist attacks, which appear to be successfully destabilizing one of the most strategically important regions on Earth.
The $150 Billion that Obama gave the Iranians, much in the form of currency, is surely being used by the Iranians to fund these terrorist attacks, which appear to be successfully destabilizing one of the most strategically important regions on Earth.
Well done, Barack!
Do you still not understand how that happened?
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