Published: Wed, September 18, 2019
Electronics | By Kelly Massey

Oil plummets 5% as Saudi output seen returning soon after attacks

Oil plummets 5% as Saudi output seen returning soon after attacks

The report said Saudi Aramco is activating idle offshore plants to make up for some of the lost production and shipments are cutting into stockpiles.

His briefing to reporters was highly anticipated around the world, with oil prices spiking more than 14% on Monday on the first day of trading after the attacks on Saudi Arabia.

Oil prices surged almost 20% on Monday after the attack on the world's top oil exporter, which has been the supplier of last resort for decades. As oil, financial and stock markets remained jittery, fuel retailers raised the price of petrol by 14 paise to Rs 72.17 a litre and diesel by 15 paise to Rs 65.58 in the Delhi market, the national benchmark.

Brent, the worldwide benchmark, was down 6% to $64.89 a barrel. West Texas Intermediate was down $2.40, or 3.8%, at $60.50 a barrel.

The Huthis claimed responsibility for the attack, which halved oil output in Saudi Arabia, the world's top crude exporter. Not a word about the fact that Hadi has long since resigned and left the country, nor that he spends more time in Saudi Arabia than in Yemen.

If Iran or one of its proxies carried out the attacks in Saudi Arabia, it would fit a strategy that Tehran has pursued for months in its escalating confrontation with the United States, analysts said. The kingdom, though, has not yet said where the attack was launched from or what kind of weapons were involved.

He said Riyadh did not yet know who was responsible for the attacks, though Washington has pointed the finger at Tehran. The Houthis have claimed the attack and Iran has vociferously denied Pompeo's claim.

Trump declared Monday it "looks" like Iran was behind the explosive attack on the Saudi oil facilities.

The Wall Street Journal, citing unnamed sources, reported that the intelligence report-that was not shared publicly-indicated that Iran raided the massive oil field with at least a dozen missiles and 20 drones.

Earlier, he had said the USA was "locked and loaded".

Cokie Roberts, broadcast journalism legend, dies at 75
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Also, President Donald Trump said it was no longer necessary to release reserves from U.S. emergency stocks.

Drivers nationwide can expect to pay a bit more at the pump in the coming days following the most recent drone attack in Saudi Arabia over the weekend.

"Iran can count on public skepticism to afford it some deniability under any circumstances, but an attack of this magnitude stands a much greater chance of provoking very severe diplomatic and military consequences", warned Michael Knights, a senior fellow at The Washington Institute for Near East Policy.

In withdrawing the US from the accord past year, Trump reimposed the sanctions, hobbling the Iranian economy.

Iran's supreme leader said Tuesday "there will be no talks with the U.S.at any level".

Iran's supreme leader Ali Khamenei announced on Tuesday that "there will be no talks with the USA at any level" as he apparently sought to end all speculation about a possible meeting between the two countries' presidents at the United Nations later this month.

Ali Vaez, the Iran project director at the International Crisis Group (ICG), said plausible deniability has been the trademark of Iran's push-back strategy against the United States - from attacks on US forces in Iraq after the invasion in 2003 to attacks against shipping in the Persian Gulf this year.

Rhodes criticized the idea of the US retaliating against Iran for them playing a role in the Saudi oil strikes, saying the "American military should certainly not be for sale to the highest bidder". Establishing numerous US bases in the Persian Gulf region was never a cost-effective way of "defending" oil-the cost of the military forces ended up exceeding the value of Persian Gulf oil imported into the United States.

"The Iranians have less and less to lose and take more and more risks, which is equally true of the Houthis", as Ali Vaez of the International Crisis Group tells the French website Le Point.

Trump offered mixed signals about a possible US response to the attack on its ally, Saudi Arabia.

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