Published 20:44 IST, September 16th 2019
Saudi Arabia's Aramco Plants remain a potential target: Houthis
Yemen's Houthis have issued a warning that Saudi Aramco's oil processing plants still remain a target, after they claimed responsibility for the drone attacks
Advertisement
Following the attacks on Saudi Arabia's Aramco Plant on September 14, Yemen's Houthi movement has yet again threatened oil processing plants, saying that they could be attacked "any moment". The Houthis have warned foreigners and asked them to leave the area. Houthi military spokesman Yahya Sarea claimed that the attacks on Aramco plants in Abqaiq and Khurais in the kingdom's eastern region were carried out by drones. Sarea said that the Houthis attacked to stop Saudi Arabia's aggression and blockade on Yemen.
Effect on Oil reserve and prices
Saudi Arabia is the world's biggest exporter of crude oil with more than 7 million barrels of oil shipment to global destinations every day. The attack knocked out more than half the Kingdom's output. As a result, oil prices soared, increasing tensions in the Middle East. The state-run oil company Saudi Aramco said that the attacks cut the kingdom's output by 5.7 million barrels per day (bpd) which is more than 5% of global oil supply. To make up the loss, Aramco is in the process of planning what is expected to be the world's largest initial public offering. Within 48 hours of investigation, the company will draw down oil in storage to compensate for the loss, said Saudi Energy Minister Prince Abdulaziz bin Salman.
US blames Iran, supports Saudi Arabia
U.S. Secretary of State Mike Pompeo put the blame squarely on Iran, writing on Twitter that there was no evidence the attacks came from Yemen. Pompeo accused Iran of attacking the World's energy supply despite calls for de-escalation. The US has condemned the attack and Trump told the Saudi Crown Prince that Washington was ready to work with the kingdom to guarantee its security. Moreover, the US Department of Energy has extended its support saying that it's ready to release oil from its reserve in time of need. As per the State News Agency, Saudi's de facto ruler Crown Prince Mohammed bin Salman told U.S. President Donald Trump on telephone that Riyadh had the will and capability to confront and deal with this terrorist aggression.
Saudis blame Iran for previous attacks
An investigation had been launched to find the true attacker said Coalition spokesman Colonel Turki al-Malki. There were no casualties in the attacks, stated Aramco Chief Executive Amin Nasser.
While Saudi Arabia has yet to accuse anyone of the current attacks, they have accused Iran for previous attacks. Saudi Arabia claims that Iran supplies arms to the Houthis. Tehran has denied the accusation. Yet Iran denies it.
18:58 IST, September 16th 2019