Won't Rule Out Trump-Rouhani Meeting After Blaming Iran for Saudi Attacks

Andrew Cummings
September 16, 2019

Following the drone attacks, Saudi Arabia temporarily cut its oil production from its two oil facilities run by Saudi Aramco, which corresponds to almost two million barrels per day.

Aramco gave no timeline for output resumption.

It is an extraordinary charge to make, that Iran used missiles and drones to attack its neighbor and rival Saudi Arabia, as the region teeters on the edge of high tensions.

Mr Trump said on Twitter that the U.S. was waiting to hear from the Saudis as to who they believe was behind the attack and "under what terms we would proceed!" According to insiders, the return to full oil capacity will take "weeks".

Diwan says while the amount of oil available on the market may remain plentiful now, the attacks will raise its price.

Trump also is apparently trying to ward off concerns by tweeting "PLENTY OF OIL!".

Pompeo tweeted that there was "no evidence the attacks came from Yemen". And we've also had some comments this morning from Iran.

However, oil price news noted a broad price rise was checked by the timely statement of U.S. President Donald Trump that he would order the release of oil from the U.S. Strategic Petroleum Reserve (SPR) if required.

That drew an angry response from Tehran, where foreign ministry spokesman Abbas Mousavi said: "Such fruitless and blind accusations and remarks are incomprehensible and meaningless".

The International Energy Agency, or IEA, said on Saturday it was monitoring the situation in Saudi Arabia. It holds reserves at home and in Egypt, Japan and the Netherlands.

"The surge in prices is the natural knee jerk reaction but the path ahead and ability to sustain at elevated levels remains dependent on the duration of the outage, the ability to meet export commitments through domestic drawdowns, demand elasticity at higher prices as well as government and agency policy", said Michael Tran, managing director of energy strategy at RBC Capital Markets in NY.

The energy minister said Aramco "is now working to recover the lost quantities" of oil and will update the public within two days.

Other analysts expect a smaller oil market rally in the short term.

Saudi Arabia, leading a Sunni Muslim military coalition that intervened in Yemen in 2015 against the Houthis, has blamed rival Iran for previous attacks, which Tehran denies.

The attack dimmed hopes for potential nuclear talks between Trump and Iranian President Hassan Rouhani at the UN General Assembly this week.

According to the U.S. official, 17 structures at Abqaiq suffered damage on their west-northwest facing sides, along with two points of impact at Saudi's Khurais facility.

"I'll allow the president (Trump) to announce a meeting or a non-meeting", Conway told "Fox News Sunday". Tehran ruled out talks until sanctions are lifted.

Sunni Saudi Arabia and Shi'ite-led Iran back opposing factions across the Middle East, from Yemen and Syria to Lebanon and Iraq. Pompeo said Tuesday that Trump was "prepared to meet with no preconditions".

Other reports by iNewsToday