Published: Tue, September 17, 2019
Worldwide | By Lisa Hogan

Oil’s Dramatic Advance Pauses as Market Awaits Saudi Clarity

Oil’s Dramatic Advance Pauses as Market Awaits Saudi Clarity

US President Donald Trump has said that the United States is ready to help Saudi Arabia, but will wait for a "definitive" determination on who was responsible. Iran has denied any involvement in the attack.

Europe's benchmark Brent crude surged by 20 per cent and United States counterpart WTI by 15 per cent as commodities trading got underway and after President Donald Trump warned that the USA was "locked and loaded" to respond to the attacks that Washington blamed on Iran.

Iranian state TV quoted Ayatollah Ali Khamenei as saying this is the position of the entire leadership of the country and that "all officials in the Islamic Republic unanimously believe" this. The U.S. already has the USS Abraham Lincoln aircraft carrier battle group in the area, as well as fighter jets, bombers, reconnaissance aircraft and air defences.

Washington also wants to pressure Tehran to end its support for regional proxy forces, including in Yemen where Saudi forces have been fighting Houthis, who are allegedly backed by Iran, for four years.

US output may be booming, but the country's many shale drillers hold little to no output in reserve.

Iran's President Hassan Rouhani alongside the leaders of Russian Federation and Turkey, in a news conference in Ankara.

The attack on Saudi Arabia that triggered the biggest jump in oil prices in nearly 30 years was carried out with Iranian weapons, a Saudi-led coalition said on Monday. He also re-imposed and escalated sanctions on Iran that sent the country's economy into freefall. Officials said the photos show impacts consistent with the attack coming from the direction of Iran or Iraq, rather than from Yemen to the south. But he stressed that military retaliation was not yet on the table in response to the strike against a key U.S. Mideast ally.

He said: "Don't forget, and this is very important, Putin does very well from an increase in oil prices".

"The Americans adopted the "maximum pressure" policy against Iran, which, due to its failure, is leaning toward 'maximum lies, ' " Mousavi said.

An anonymous US official told the Associated Press that no decisions were made Sunday, but that all responses, including military action, are on the table.

The weekend attacks on the kingdom eliminated about 5 per cent of global oil supply, propelling Brent crude to a record surge on Monday.

Official Spokesperson of the UN Secretary General Stephane Dujarric said in a statement that the Secretary General condemns Saturday's attacks on two Aramco oil plants.

Moreover, the market mood remains cautious amid lingering fears over a military response to attacks while the US' likelihood of releasing its crude reserves also collaborates to the downbeat tone around the black gold. "But yet there were multiple, multiple attacks that were able to breach these defenses", he added. Turki al-Maliki said, "All the indications and operational evidence, and the weapons that were used in the terrorist attack, whether in Buqayq or Khurais, indicate with initial evidence that these weapons are Iranian weapons".

The Saudis invited the United Nations and other global experts to help investigate, suggesting there was no rush to retaliate. It's premature to talk about reversing the oil-production cuts implemented by OPEC and its allies, he said. "Neither in NY nor anywhere" else.

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