Following the drone attack by Yemeni rebels on a major Saudi Arabian oil processing plant, The Kremlin’s warned that the loss of production from the stricken plant will destabilise oil prices worldwide. This follows statements by the European Union and the UK condemning the Houthi drone attacks on Saudi Arabia’s oil facilities carried out on Saturday (14 September, 2019).
While President Trump made belligerent noises, guaranteed to provoke the rebels Shia Muslim supporters in Iran , Russian President Vladimir Putin has simply asked to b kept up to date on developments in the wake of two drone attacks on the major Saudi energy facilities. Russia believes such incidents will not contribute to the stabilisation of the global energy market, presidential spokesman Dmitry Peskov has said. It is safe to assume Russia’s leaders see the incident as an opportunity to benefit from higher crude oil prices.
“The drone attacks on Saudi Arabia’s oil infrastructure are an alarming event for the oil markets…Of course, such turbulence does not contribute to the stabilisation of the energy market,” Peskov said.
According to Peskov, the Saudi side has not appealed to Russia for assistance in the wake of the attacks, and probably has the necessary capacity to deal with the disruption on their own. “We don’t know whether they need help, but it’s unlikely. They have all the necessary capabilities themselves,” he said.
Peskov said the Kremlin “strongly condemned” Saturday’s incident, if it could be confirmed that the Saudi Aramco facilities were attacked by drones. (He would say that, wouldn’t he?)
EU, UK, France Condemn Attacks
Earlier on Sunday morning, the European Union’s foreign policy office issued a statement condemning the drone attacks, which, the statement read, posed a “real threat” of escalation of the Saudi — Yemeni conflict into full scale war between two regional powers, Saudi Arabia and Iran, and adding that “at a time when tensions in the region are running high, this attack undermines ongoing work at de-escalation and dialogue.” Brussels stands in solidarity with Saudi authorities and the Saudi people, the statement noted.
Following yesterday’s attack by drones on two ARAMCO oil facilities in Saudi Arabia, it is important to clearly establish the facts and determine responsibility for this deplorable attack.
EU repeats its call for maximum restraint and de-escalation https://t.co/kOIzhlYFGF
The UK Foreign Office also condemned the attack in diplomatic terms although certain people in The Treasury must have been rubbing their hands with glee as it becomes economically viable to reopen many North Sea rigs if Brent Crude goes above $80. China too would not be disappointed as Saudi Arabia is a long term ally of the USA, while the smaller oil producers most likely to benefit from the Saudi outage are more friendly to The People’s Republic in its bid to establish the petroyuan as a rival to the Petrodollar for cross border oil trades.
I have reported many times in The Daily Stirrer and Boggart Blog on the merciless bombing of the impoverished Shia Muslim state of Yemen. The conflict started when rebels tried to depose the Saudi — friendly regime and spawned a huge humanitarian crisis which was barely reported in mainstream media, as Saudi air strikes targeted roads, water supplies, sewage systems, hospitals and ports.
In December 2017 I wrote:
Another humanitarian crisis has been building in Yemen. In a small nation crippled by years of war with the brutally oppressive authoritarian regime in neighbouring Saudi Arabia, a rich oil state with an army and airforce equipped with sophisticated US and European made weapons, and now devastated by hunger as Saudi air strikes have destroyed infractructure and the economy, every ten minutes a Yemeni child in Yemen dies of malnutrition, diorrhea or respiratory infections.
A recent UNICEF report reveals over 400,000 Yemeni children suffering from acute malnutrition. Without expert medical attention, these children will die, and while the ‘liberals’ and ‘progressives have always been quick to accuse the regime in Syria of war crimes even though it was the Obama backed rebels who attacked hospitals in government held areas, they have been completely silent about similar Saudi atrocities in Yemen. The situation is so dire that over half of the entire nation’s 25 million people do not have sufficient food or access to clean water.
Why are Yemeni children dying? Since 2014 Yemen has been consumed by a civil war, in which a justified rebellion against an oppressive regime has been thwarted by intervention from the theocratic regime in the nation of Sunni Muslim head amputators, vagina mutilators and torturers of disobedient wives, Saudi Arabia. In March 2015, the Saudi government increased its involvement in the internal conflict in Yemen because it was worried that a more pro-Iran faction — the Shia Muslim Houthis — would take over the government. Since then, with U.S. weapons and logistical support, the Saudis have been pounding Yemen. This 20-month-old Saudi bombing campaign has not only killed thousands of innocent Yemenis, but caused a breakdown of society in the poorest country in the Middle East.
And yet we hear no word of protest from the western world’s mainstream media whose left wing reporters are too busy wringing their, wailing and gnashing their teeth as they parrot the globalist narrative over another obvious false flag chemical weapons attack in Syria, where aid workers wearing t-shirts, shorts and sandals were shown treating the alleged victims of an alleged Sarin gas attack, even though Sarin is considered so deadly full haz-mat suits are required to even enter an area where its use is suspected.
It is still the case, or was until Saturday anyway, that the brutal and bloody civil war in Yemen has been given little coverage in the news media of developed nations. Now the Yemeni rebels, or their Iranian allies according to some sources have hit Saudi Arabia hard and in the process disrupted oil supplies, somehow I think events in Yemem will be given a lot more attention in broadcast news bulletins and newspaper front pages.
They had it coming
After what the Saudis have done to Yemen over the four years in which the militaryt might of the oil — rich desert kingdom has been attacking Yemen in such a brutal way that had a Christian or secular nation been attacking a small Muslim country with similar ferocity the full might of the FUKUS axis (France, UK, USA ) would have been unleashed against the aggressor. Here’s a sample of what has been going on.
October 2015, Boggart Abroad:
The Saudis formed a coalition with Bahrain, Egypt, Jordan, Kuwait, Morocco, Qatar, Sudan and the United Arab Emirates to support Hadi and counter the Houthis advance. “The U.S. provides logistical and intelligence support for the air campaign — even refueling its jets,” NPR reported last week. The bombing has proved effective in countering the advance of the Houthis, who have also committed war crimes according to international rights groups, and allowed Hadi to return to Aden after months of exile.
What a lot of people in the middle east did not understand was that when Obama promised US support for rebels fighting to overthrow tyrannical regimes, what he meant was rebels fighting to overthrow regimes Washington wanted overthrown (such as Assad in Syria, as we reported elsewhere, the USA has been working to oust Assad since 2006. Saudi Arabia, Washington’s major ally in the Arab world is a different matter so if the Saudis felt threatened by Houthi rebels in Yemen then The White House felt threatened by them too.
In March 2015, a Saudi-led coalition began bombing Yemen in an attempt to support the embattled regime and counter the advance of the Shia Houthi rebels. This coalition, supported by logistics and intelligence provided by the United States, has now been accused of war crimes by the human rights group Amnesty International.
“The coalition airstrikes investigated by Amnesty International in Sa’da governorate have involved serious violations of international humanitarian law, including war crimes,” the report, published this month by Amnesty, reads.
and from my Medium back catalog in November 2017:
Civilians in Yemen are still in the grip of a major humanitarian crisis as Saudi Arabia’s war on the impoverished republic continues unabated. Shocking numbers are affected including 7 million civilians facing severe malnutrition, and 19 million out of the country’s 27 million population “in need of some form of aid.” Thousands of civilians have already died as a direct result of airstrikes. However, all of this is made worse by the Saudis having imposed a blockade on humanitarian support. It effectively genocide and yet the United Nations does nothing and the USA and NATO allies impose sanctions on nations which try to help Yemen.
Yemen has been devastated by more than two years of brutal civil war, with Sunni Muslims loyal to the oppressive regime, supported by the Saudi Arabian government’s well equipped military and politically by the United States. President Abd-Rabu Mansour Hadi’s government is backed by the Saudi-led coalition and is fighting to drive the Shi’ite Houthi rebels out of cities they seized in 2014 and 2015.
Since the beginning of the conflict, US support for Saudi Arabia in Yemen, started by Obama and continued by Trump, thousands of innocent civilians — including children — have been slaughtered by American and European manufactured weapons. In spite of the fact that the Saudis have been caught dropping US supplied bombs on schools, hospitals, and marketplaces, (remember the faux outrage from liberal media and politicians when Assad’s forces were accused of doing that in Syria, even though a blind, deaf and dumb person could have seen those alleged atrocities were false flag events.) The Saudis and their mercenaries have been directly targeting civilians yet the US and NATO continue to support the side controlled by the Saudis.
Last week, Houthi rebels in Yemen launched a ballistic missile toward the Saudi Arabian capital of Riyadh. In response to the attack which killed no one, the Saudis placed a blockade on all flights in Yemen, including humanitarian aid. The blockade has stopped the flow of the much needed medical supplies and the food for which millions of Yemenis are desperate and if not reversed will cause the largest genocide by starvation in modern history.
I could add accounts of many more examples of Saudi Arabia’s inhuman aggression towards Yemen, how Yemeni water supplies and medical centres were deliberately targeted and sewerage systems in the tows were bombed, ensuring the spread of diseases in the hot climate, but after a while readers become desensitised.
So nobody can say the response has been disproportionate.
Good news for those with ‘long positions’ on oil
Predictably, news of the attack drove financial and commodity traders traders into a collective panic as global markets reopened after the weekend break, with with commodity traders desperately trying to calculate what the upper limit per barrel of oil prices would be (the previous record of $1.09 might hold when markets realise that while Saudi Arabia is still the world’s second biggest producer it is not as dominant as it once was, having been passed by the USA in 2018, and if the Kingdom and Iran decide to neutralise each other, Russia, Venezuela, Kazakhstan, the nations of the Caspian region, Nigeria , Mexico and a host od smaller oil producing nations will be happy to pump more once higher prices make production economically viable. When brent (the highest grade of crude,) reopened for trading in the aftermath of Saturday’s attack on the “world’s most important oil processing plant“, the price immediately exploded to around 20% higher than at close of business on Friday, to a high of $71.95 from the Friday $60.22 close, its biggest jump since 1988.
The hit to stability of supplies will exceed the loss of Iranian oil output in 1979 during the Islamic Revolution, according to data from the U.S. Department of Energy. It will also be worse than the loss of Iraqi and Kuwaiti production in 1990 when Saddam Hussein decided to annex Kuwait and add it to his empire and saw most of the oil infrastructure of both nations destroyed in the ensuing war.
News that the Saudi outage could last for months, rather that the weeks initially predicted suggest this could be just the start. Even if there are no more attacks on Saudi facilities or retaliation by the Saudis on Iran, the supply problem will not be be clear right away. The Saudis can still deliver from reserves for a few weeks but if the outage runs to months as industry sources are now predicting, we can expect crude prices to keep rising until there is relable evidence that output will be restored.