Saudi Arabia tells oil market it has ability to keep customers supplied

Saudi Arabia tells oil market it has ability to keep customers supplied

The government's statements were carried in state-run media following a weekly Cabinet meeting that was overseen by King Salman, who was quoted saying Saudi Arabia is capable of defending against such "cowardly attacks". His question to reporters, many of them Saudi, drew applause.

This year, the Huthis have claimed responsibility for drone attacks on Saudi oil installations, airports, power stations, and tankers.

Nasser said Saudi Aramco is still in the process of estimating the fix work that needs to be carried out on the refineries.

Those who allege Iran's involvement point to the timing of the attacks coinciding with key moments in the unraveling of Iran's 2015 nuclear deal with world powers, which President Donald Trump unilaterally withdrew the USA from on May 8, 2018. Oil surged as much as 20 per cent at one point on Monday.

Brent for November settlement fell $4.09 to $64.92 a barrel at 10:12 London.

The attack also took out 2 billion cubic feet of daily gas production.

"The attack on Saudi Arabia is a risky escalation in itself", senior foreign ministry official Anwar Gargash tweeted.

A USA team is helping Saudi Arabia evaluate evidence from the attack, which was claimed by Houthi rebels in Yemen who are battling a Saudi-led coalition.

"What we have to ask is, "why?' And we know Trump tells us they 'pay cash" and they pay cash not just for our airplanes, they pay cash at Trump properties", Rhodes said.

On the same day, Saudi officials said they believe the weapons used in the attack were made in Iran - and that they were working to determine where they had been launched from.

United States officials said they do not believe Houthi claims that the Yemen-based fighters carried out the latest attack.

Iran has denied the charges. Some appeared to show damage on the western side of the facilities, not from the direction of Iran or Iraq, where pro-Iranian militias are present.

In a sign that US allies remain unconvinced, French Foreign Minister Jean-Yves Le Drian said he was unsure if anyone had any evidence to say whether drones "came from one place or another".

Over the summer, Iran seized foreign tanker ships near the Strait of Hormuz, shot down at least one sophisticated USA drone - which did not draw a military response from Trump - and began enriching nuclear materials at unsafe new levels. A video later released by the US military appeared to show Iranian forces removing a magnetic bomb, known as a limpet mine, from the Japanese vessel, something never explained by Iran.

Also, President Donald Trump said it was no longer necessary to release reserves from USA emergency stocks.

Prices receded five percent on Tuesday, reversing some of the previous day's gains as analysts said they were expecting Saudi output to recover sooner than expected after the weekend's attacks'. "These attacks clearly demonstrate that the strategy of bombing the Yemenis and starving the Iranians into submission is more likely to backfire than to bring the intended policy results".

The JCPOA, or Joint Comprehensive Plan of Action, is most commonly known as the Iran nuclear deal. He also re-imposed and escalated sanctions on Iran that sent the country's economy into freefall, including targeting its oil exports.

Iran's supreme leader said Tuesday "there will be no talks with the US at any level" - remarks apparently meant to end all speculation about a possible US-Iran meeting between the two countries' presidents at the United Nations later this month.

Supreme leader Ayatollah Ali Khamenei said Washington's real goal was to bring his country to its knees.

The U.S. administration has pursued a "maximum pressure" campaign against Iran that seeks to force it to abandon its nuclear program and make other changes. The volatile situation in the region finally boiled over earlier this year as U.S. President Donald Trump used sanctions to attempt to choke off all of Iran's oil exports - which are the lifeblood of its economy - after he unilaterally withdrew from an global nuclear deal. That sparked a USA sanctions campaign that has cut off much of its oil exports from the worldwide market, amid promises by Iranian officials that no one would be able to export oil from the region if Tehran couldn't.

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