Update: The WSJ is out with an update hinting at just how much the price of oil is set to soar when trading reopens late on Sunday after the Saudi Houthi false-flag drone attack on the largest Saudi oil processing plant:
Saudi Arabia is shutting down about half of its oil output after apparently coordinated drone strikes hit Saudi production facilities, people familiar with the matter said, in what Yemen’s Houthi rebels described as one of their largest-ever attacks inside the kingdom.
The production shutdown amounts to a loss of about five million barrels a day, the people said, roughly 5% of the world’s daily production of crude oil. The kingdom produces 9.8 million barrels a day.
And while Aramco is assuring it can restore output quickly, in case it can’t the world is looking at a production shortfall of as much as 150MM barrels monthly, which – all else equal – could send oil soaring into the triple digits. Just what the Aramco IPO ordered.
Supply loss from KSA may be as high as 150 MM barrels/month. Oil may hit $100.
— Krishnan Viswanathan (@kxviswan123) September 14, 2019
What appears to be the most devastating Yemen Houthi rebel attack on Saudi Arabia to date, took place overnight on the world’s largest oil processing facility as stunning videos emerged of massive explosions rocking the major Aramco Buqyaq facility.
Fires burned into the morning daylight hours, with explosions also reported at the Khurais oil field, in what the Houthis said was a successful attack involving ten drones. “These attacks are our right, and we warn the Saudis that our targets will keep expanding,” a rebel military spokesman said on Houthi-operated Al Masirah TV.
Saudi authorities — initially slow or reluctant to identify the cause of the major blaze — on Saturday issued a confirmation via the Saudi Press Agency: “At 4.00am (01:00 GMT) the industrial security teams of Aramco started dealing with fires at two of its facilities in Abqaiq and Khurais as a result of… drones,” an interior ministry statement said, which further claimed the fires were “under control”.
However, the Saudis have stopped short of acknowledging the Houthis were behind the attack, which Riyadh is also likely to blame on Iran, which has lately promised that if it can’t export its oil then “no one will”.
It remains unclear according to early statements whether there were injuries or casualties in the twin oil facility attacks.
In some of the video captured by onlookers outside the Buqayq facility, gunfire in or around the complex was apparent.
A third video filmed from around the corner from the first two.
Geolocated: (https://t.co/0AjN8ZmrC3) pic.twitter.com/zBwKLbWUk8
— John Marquee (@john_marquee) September 14, 2019
The impact on global oil markets – closed for the weekend – could be significant given the Khurais field produces about 1% of all the world’s oil (estimated at over 1M bpd and reserves of over 20BN bpd) and more importantly Abqaiq, which based on the stunning local footage bore the brunt of the drone attacks, remains the most crucial of the kingdom’s processing plants.
Located 37 miles southwest of Aramco’s Dhahran headquarters, it controls all the flows from fields like the giant Ghawar field to coastal export terminals like Ras Tanura. Saudi Aramco describes the Buqyaq facility as “the largest crude oil stabilization plant in the world.”
The world's largest oil processing facility has been hit in a drone attack.
Yemen's Houthi rebels have said they were behind the strikes on Saudi Arabia's Abqaiq plant. Read the full story here: https://t.co/PIGqR4cB2o pic.twitter.com/0Zor9f3Eye
— SkyNews (@SkyNews) September 14, 2019
Meanwhile, the United States was quick to “strongly condemn” the attack amid already soaring tensions in the gulf after a summer of “tanker wars” and Iranian threats of walking away altogether from the 2015 nuclear deal (JCPOA).
The U.S. envoy to Saudi Arabia issued a statement saying, “The U.S. strongly condemns today’s drone attacks against oil facilities in Abqaiq and Khurais. These attacks against critical infrastructure endanger civilians, are unacceptable, and sooner or later will result in innocent lives being lost.”
According to Reuters reports the drone attacks will impact up to 5 million bpd of oil production, which suggests that the price of oil – already severely depressed by the recent news that John Bolton is out, making de-escalation with Iran far more likely – is set to soar when trading reopens late on Sunday, just what the upcoming Aramco IPO desperately needs, which in turn has prompted some to wonder if the “Yemen” attack on Saudi Arabia wasn’t in fact orchestrated by Saudi interests. 18 years after Sept 11, this shouldn’t sound all that outlandish…
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I guess we better stop exporting all that oil than so the US doesn’t feel the pinch…oh wait that won’t happen because then someone can blame Trump for the higher oil prices.
Just in time for home heating oil season too.
Get a wood stove and suck it pup
We are installing an outdoor wood stove with geothermal…cool, huh?
The U.S. worrying about innocent lives being lost? since when?
I guess those 500,000 Yemeni children weren’t innocent enough to qualify.
911 they didn’t care How many were murdered again
We can always go steal Venezuela’s oil.
https://crooksandliars.com/2019/01/john-bolton-says-ultimate-goal-venezuela
4,500 US Truckers Lose Their Jobs In August Amid
Freight Recession’In Trump’s ‘Booming Economy’
Think plane.
https://www.lloydsloadinglist.com/freight-directory/news/Air-freight-prices-forecast-to-rise-4-in-2018/70896.htm
Say hello to Hillary for me…
TDS much?
At least he’s not Hillary much?
100 dollar a barrel oil? We will have to wait and see. There is plenty of oil around the globe available to replace this shortfall; like from Iran and Venezuela. Here in the U.S. we should not see an increase in price. Are we not an exporter?
And indeed did Iran not tell us that if they could not deliver oil exports would they not see to it that no one else would deliver oil out of that region?
Looks like they are true to their word.
If oil does go up to 100 dollars a barrel it would be as a result of price gouging and greed; not lack of supply. In that case the president can do something about it.
I always ask, “Who profits?’ Let’s see……… 1) The US had started negotiations with the Houthis and were trying to end the war and the Saudi’s attacks. 2) Lagging oil prices and war have been costly for the Saudis and in the long run they will profit from prices that surge but only reset partially after repairs. 3) The Saudi’s Aramco IPO will make a killing after this. 4) The Saudis have been doing everything they can to have the USA fight/attack their hated enemy Iran for a long time now– they needed an event like this to get sympathies in their favor. Nothing gets people’s ire up more than misplaced patriotism or their wallets getting leaner.
And Israel may get that US-Iran war they’ve been wanting.
Quite a cute coincidence.
this is far from first time hothis have blown up saudi oil facilitys with drones this is just the most successful attack to date. since its shut down the entirety of the saudis’s separation facility’s. leaving just reserves and raw crude.
if you care to lookup story’s youll find strikes like this going back years. this is just some of the inevitable blow back that the war in Yemen was/is/will cause
people forget the majority of yemens armed forces are fighting with the ‘rebels’ and they have had a formal military education and understand how wars and supply chains work.
expect this to embolden them into further followup attacks on same target or related infrastructure/targets as they attempt to prolong shutdown
as for any conflict in the gulf of homz, that would put even further pressure on oil prices and with Iranian proxys demonstrating the ability to penetrate one of the worlds most sophisticated missile defences undetected and blow up the worlds largest oil separation plant, what dose that say for irans ability to launch strikes on the scores of military bases or fleets within range or Iranian and allys missiles and drones?
how many thousand lives was it till america though Vietnam was a bad idea wasnt it only 10 or 15,000?
how long would it take to reach that if 5th fleet and a few bases where obliterated by drone and missile swarms?
pentagon would be pulling its hair out right now, damned if they do damned if they dont. they where hoping iran would collapse economically before it became a military threat allowing them to loot it and stimulate economy/pay the troops, but successful attacks like this by its impoverished besieged allies show that that, 1 it has probably failed and 2 will impact on economy (at the moment possibly triggering the second 1/2 of GFC that we have been delaying all these years) and make it harder to pay the troops
[i pretty much guarantee right now they would be trying to work out if they can detect a similar attack with 5th fleet at their current position or if they need to redeploy to give more time for detection]
it probably should of said will oil go to $100 a barrel IN THE WEST since we are constrained by USA’s unilateral sanctions(illegal under international law) preventing us from buying oil from country’s like Iran and Venezuela
their will of course come a point where the US alliance is worth less than cheaper oil but that point is well beyond $100 a barrel (i feel)
How does the loss of 5% of world production translate into a 400% increase in global price?
I must suck at math because that makes no sense.
WTI is in the upper $50’s so it is only a 75 – 80% increase. Speculators will drive it too high, then it will settle back to a normal price, but probably 10 – 15% higher than current.
Never let a good crisis go to waste, you know.
I thought it read $200 per barrel, not $100. I need a new reading prescription.
Sen. Graham Wants to Bomb Iran in Response to Houthi Attack on Saudi Oil
https://kurtnimmo.blog/2019/09/14/sen-graham-wants-to-bomb-iran-in-response-to-houthi-attack-on-saudi-oil/
Whoa, now that’s a surprise.
he just doesn’t like them b/c they kill gays —
Those speculating on windfall profits by positioning themselves financially in the correct side of this large of an incident is no accident or lucky guess . Check out our Congress critters portfolio when gas hits $4 bucks a gallon at the pump along with heating oil . Insiders windfall ?
And no they don’t give a flying fuck who’s kids die or how many that’s why we went to war in Vietnam and every other shithole we can piss blood and treasure away while the ruling elites make out like bandits !
Fuck it all and 911 too
For more than a year we Americans have been told we are energy independent so why would Saudi oil production matter to us other than to a minority of American investors who are probably due for a hair cut anyway after decades of market manipulation ???
Well, it could get very interesting from here….if 10 drones could do this…..why not send 100 drones next time? So the camel jockey’s will be the first with a no human in the cockpit air force capable of wreaking havoc! I am confident Iran has at least another 100 drones to loan the Houthi.
Take down all of the Saudi oil refinery infrastructures….then onto the oil terminals and pipelines! That’s what I would be doing based on the success of this raid.
What does Saudi do in response (no much I bet they suck). Maybe they can persuade the small hats to help…and really get the party going.
I don’t think it is a coincidence that Iran is spinning centrifuges at warp speed…..to add to the existing inventory of nukes……wouldn’t that be some shit if there were a couple of nice mushroom clouds spread around the Persian Gulf!
Thank God Bolton is exiled from the building though I am sure plenty of neo-con jew bastards are pushing Trump to attack Iran…..
Who said drones did it and what proof is there that drones did it? Think about it. What proof is there that drones did it?
If you consult the US’s foreign policy playbook, then it is more than likely a false flag attack.
Dude you are a one trick pony. Please provide a scintilla of support for your statement. Tick tock.
The playbook:
Operation Northwoods
Gulf of Tonkin
Soviet aircraft false flags
Nayirah testimony
Iraq WMD’s
Vote harder boy!
Yes, false flags exist but not every event is a false flag….assuming every event is a false flag simply makes you a one-trick pony with nothing meaningful to say. Pompeo is now pointing the finger at Iran and I have seen a suggestion that cruise missiles were used from Iran and Iraq not drones from the south (Houthi territory in Yemen). If it was a direct attack by Iranian cruise missiles then the shit is really going to hit the air circulation device.
You don’t even state your “theory”….are you claiming the Saudis (with US help I guess) blow up their own refinery to goose up the price oil to assist the Aramco IPO? Is that your motivation for a false flag?
You can’t read and you’re having a debate with someone who can read. Here is my quote from above;
ME:
Where do I say that I am assuming it to be a false flag? All Idid afterwards is post a partial list of US false flag events or attempts at such. Oh and I left out of the list the mother of all false flags, 9/11.
ME:
“US playbook…..””more than likely”
These are words and sentences that do not fit the definition of assumption. You can’t read. I said “more than likely”.
YOU;
Not only is Pompeo pointing the finger at Iran but senator Lindsey Graham is too as I have posted above, all before any such evidence even exist. If that is not already a suspected attempt at a false flag in the making, then what is? These same ass clown neocons and Trump himself are trying to say the same stupid unproven shit, Iranian involvement, about Venezuela also. Has the thought ever dawned on you that added to the situation is the fact that congress recently passed a bi-partisan bill to end the US support for the wholesale slaughter of the Yemeni people and Trump vetoes the bill? At least both sides of congress has that much sense. Have you done any self-directed research on these issues or are you just a typical blue pilled sheep that needs a shepherd, MSM and government? Are you really that dense to contradict your own previous narrative?
I already did. Again, you can’t read. You can’t put two and two together in order to know who the real enemy is. There is no way to have conclusive proof of most things, but one thing there is conclusive proof of is that the US has committed several false flag attacks in the past to gain an agenda. Saying that is not the same as assuming everything is a false flag event. These facts are well documented in declassified US government documents. So my theory is based on actual facts. My theory is based on a proven track record of US foreign policy, not someone who embellishes in tin foil hat conspiracy theories.
So the next time some statist authoritarian idiot gets up in front of congress and swishes around some shit in a bottle that looks like washing powder are you going to assume like so many did that it is not an attempt at a false flag? I didn’t think so.
Next time an election comes up I suggest you vote for no more false flags. /s
Is US policy playbook something that is written in stone that everybody intimately understands? Yes you were saying it was a false flag like you do on every single thread. Why do you even comment at this point? Just put in an NPC pic and that will suffice. Alternatively make a modicum of effort and give some actual analytical thought. We don’t have any idea what actually happened and maybe we never will. What is actually interesting is thinking critically about the various actors and their likely motivations and capabilities. Being the boy who cried wolf is trite and unbecoming of a regular commenter.
I am only saying it is highly probable. As history gives us an accurate view of this probability. If the US was not a country but instead a criminal citizen it would have a very long rap sheet. Would you trust someone like that to baby sit your kids?
With your knee-jerk pre-emptive ass-covering, you’re verifying that is was an Israeli false flag.
VH…
If the Houthi’s hadn’t claimed it right away I might suspect an FF. I don’t think the Yemeni’s would want to assist us or the Saudi’s in a FF that would be blamed on them. They have been striking the Saudi’s for a while now. Also, Russia and Iran would benefit from 100.00 oil more than the U.S. Russia has worked hard at getting their production costs down after we made them the enemy and drove prices down in an effort to topple Putin.
I’m open to new information though.
Sure how do we know the moon is not made of cheese? We don’t. I am rolling out the logical extension assuming drones did it. If you have evidence to the contrary I am all ears.
It is likely we will find out what really happened sometime this week. No one can produce evidence yet. So saying it is drones is just speculation. It could have been an inside job.
But one thing seems certain. Saudi oil facilities are becoming a dangerous place to work during this war between the Saudis and Yemen. This could scare foreign contract workers away causing production problems.
Anyone else find it suspect that Bolton was fired a few days prior to this?
Blame Iran maybe we can build another Wall with more names on it after all 58000 young Americans was not to high a price for Nike shoes to get cheap labor
If oil goes above $100 a barrel here, it will pop this economic bubble we are in. Great depression 2.0 would be on the way shortly, and Trump can kiss his reelection chances goodbye.
Which of course would be why it is not a false flag…..sometimes folks just want to watch the world burn…….
This is spot on…..they are desperate in a timeline to fit into the election cycle. They need the economy issues to start now so like normal in 9 months its bleeding red bad and people will vote out Trump so a leftist can get in and give the remaining few pennies to illegal immigrants. Great plan……
Opec and sand nations losing their power to oil technology this is what happens. They sabotage themselves hoping the price goes up to keep them in business and their gdp safe from internal riots…..they refuse to acknowledge their slow demise (faster) and doing nothing to change to survive the coming energy efficiency.
The normal response would be to sabotage the other guys infrastructure then your production would be more valuable. Sure it is less risky to blow up your own stuff but I would lean more towards Shia striking a blow against the Sunni…..the sanctions we have imposed on Iran are hurting them.
I don’t think the USA should do anything….let Saudi and Iran destroy each other and our oil business does exceptionally well…..I can the neo-cons now though “we have to attack Iran and defend Mideast oil or China will”…..good let them play with the sand people!
Saudi doesn’t have security at it’s refineries ?
He had some sand in his eyes. Was a new hire from a prison in New York. Couldnt see a fuckn thing.
Oil going to 100……gold to 2000.
it shut down all gas and crude separation the oil Saudis are currently selling is from reserves their ‘bottling plant’ is out of commission