Drone attack adds lead to Saudi oil supply: Darcy cartoon

Andrew Cummings
September 17, 2019

They have attacked Saudi oil facilities before, but U.S. officials said on Sunday that they believed the drones and missiles did not originate from the south or south-west, and instead were launched from the north or north-west.

The damage to the facilities is still be assessed.

That said, reports from Saudi Aramco this morning note that customers have been told that October oil loadings are likely to be delayed.

Oil prices soared 20% after the attacks but have since pared their gains.

Iranian state TV quoted Khamenei as saying this is the position of the entire leadership of the country.

"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the worldwide rules-based order that is being undermined by Iran", he said in a tweet.

Current tensions stem from US President Donald Trump's decision to pull the country out of the 2015 nuclear deal between Iran and world powers.

United Nations aid chief Mark Lowcock said Saudi Arabia will pay $500 million to the world body next week to help fund its humanitarian response in Yemen.

Washington also wants to pressure Tehran to end its support for regional proxy forces, including in Yemen where Saudi forces have been fighting Iran-backed Houthis for four years. "It's a possibility but it's still very early", said one source who spoke on condition of anonymity.

According to AAA, the average price for a gallon of gas nationwide is $2.56.

Factors such as the price of crude oil and how long it will take for the facilities in Saudi Arabia to recover will determine if the increase in prices will be short or more long-term.

The attack, over the weekend, disrupted over 50% of the production facility.

With the Huthis threatening further attacks, world powers urged restraint. But "satellite imagery can't show you where the attack originated from", said Joe Bermudez, an expert at the Center for Strategic and International Studies who examined the images.

"All indications are that weapons used in both attacks came from Iran", rather than Yemen, coalition spokesman Turki al-Maliki told reporters in Riyadh, adding that an investigation was underway.

"Otherwise, no talks will happen ... with the Americans", he said.

Other reports by iNewsToday