Page 13 - MEOG Week 11 2021

MEOG NEWS IN BRIEF MEOG

POLICY Forces (PMF) paramilitary organisation. take to repair, seasoned oil traders now know
According to on-the-ground reports from that they should not believe a word that the
Saudi must prepare for the attack scene, the US air strikes resulted Saudis say regarding such matters. Therefore,
whether Iranian attacks succeed or not, the
in at least 22 deaths, principally among the
more attacks PMF-aligned Kata’ib Hezbollah and Kata’ib price benefit is greater than perhaps the
damage done may warrant. Specifically, the
Sayyid al-Shuhada groups that are allied
As highlighted by Oil Price just after the last with Syria’s Iranian-backed government 14 September 2019 aerial attacks on Saudi
major attack on Saudi Arabian oil facilities on in Damascus. In short, the US hit Iranian Arabia’s massive Abqaiq oil processing facility
14 September 2019, there are many positive military proxy units operating abroad rather and Khurais oil field launched by Iran-backed
aspects from Iran’s perspective in pursuing than Iran directly itself. The US’s air strikes Yemeni Houthi forces caused the temporary
such a strategy. against Iranian proxies in Syria, though, was suspension of 5.7 million barrels per day
If it had not been for Iran’s uncertainty itself retaliation for three rockets being fired (bpd) of Saudi oil output. This equates to well
about how former US President Donald just days before at the Green Zone in Baghdad over half of the country’s actual crude oil
Trump might have reacted in the run-up to with the apparent intention to destroy the production capacity, not the capacity figure
presidential elections in 2020 then there might US Embassy there. Only a few days prior to that Saudi has plucked out of nowhere for
well have been more such attacks before those this, another pro-Iran militia – Saraya Awliya geopolitical power purposes in recent years,
most recently launched on 4 and 7 March. al-Dam – fired a barrage of 107mm rockets at and resulted in the biggest rise in oil prices in
“Although major direct action against a range of targets near a US military base in a single day ever.
Iran by the US [for the 14 September attacks Erbil, the capital of Iraq’s semi-autonomous OILPRICE
on Saudi Arabia was not taken at the time – region of Kurdistan, killing one civilian
with planned strikes against Iranian targets contractor and injuring nine others. In short,
vetoed in the Oval Office due to Trump’s Iran hit US military and related proxy targets COMPANIES
concern about the possible number of civilian operating abroad. Given the US response to
casualties – Iran did pay the price later with these attacks, Iran evidently decided to up the KNPC eyes digital
the [3 January 2020] assassination of [Major ante and hit the only one of the US’s two key
General] Qasem Soleimani who was the allies in the Middle East that does not have its transformation and oil
mastermind behind Iran’s foreign military own nuclear weapons – that is, Saudi Arabia
and clandestine operations,” a source who has (and not Israel) – and the only one for which sector overhaul
worked closely with Iran’s government told an effective attack against its oil fields and
OilPrice.com last week. “With Trump gone, infrastructure would directly benefit Tehran. Kuwait National Petroleum Company
this strategy of directly attacking Saudi Arabia The most obvious and immediate benefit (KNPC) signed a memorandum of
was always going to be used again and after for major oil producer Iran of a successful understanding (MoU) with the Organisation
[President Joe] Biden authorised US attacks attack against Saudi oil facilities is that oil of Arab Petroleum Exporting Countries
on Iranian assets in Syria a few days before, prices rise, with the size of the increase and (OAPEC) to cooperate in an overhaul of the
Tehran thought the timing was right for these its duration dependent on how much damage oil sector and its digital transformation, state
new attacks,” he added. is done to Saudi oil infrastructure in any news agency KUNA reported.
The US attacks on 26 February involved air such attack. The added advantage for Iran KNPC CEO Walid Al-Badr emphasised
strikes along the border between the Syrian after the attacks on 14 September 2019 is the importance of research and development
city of Boukamal and the Iraqi town of Qaim that given the nonsensical comments from in the industry, and the role of modern
against a number of Iranian-backed militant senior Saudis about how much damage had technology in cutting costs and producing
groups in eastern Syria that operate within been done to the Kingdom’s oil infrastructure clean, high-quality oil derivatives.
the mostly Iraqi Shia Popular Mobilisation during those attacks and how long it would OAPEC Secretary General Ali bin Sabt

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