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There may be a disruption in Saudi Arabian crude oil supply, a source in Japanese JXTG Nippon Oil & Energy told Nikkei.
Saudi Arabian Aramco, whose oil infrastructure was struck by an attack on September 14th allegedly told Japan’s top oil distributor that there may be a change in shipments.
Starting from October, Aramco would start delivering medium and heavy grade oil, rather than light, the JXTG source claimed. No reason was given for the change.
If true, the move is a potential indication that the attack had a more severe impact than it was initially presented. The company repeatedly said that oil supply would be complete restored by the end of September, but if the rumor is true that may have proven too complicated to handle.
Unnamed JXTG officials suspect that the reasoning behind the change in deliveries is because it is taking more than expected for Aramco to repair its damaged facilities. Thus, it’s incapable of delivering light crude oil, which is used in the production of gasoline and light gas oil.
In Fiscal Year 2018, Saudi Arabia was responsible for 40% of Japanese oil imports.
The issue with the change in delivery is that medium and heavy oil is not specifically of worse quality, and it is cheaper to buy, but processing it is more expensive. This will, in turn, result in an increase in prices of petroleum products in Japan, if true.
The JXTG refineries, though, require a specific amount of light-grade crude oil, as well as medium and heavy to operate efficiently, so it would be forced to procure it from other sources, possibly the United Arab Emirates, or maybe the United States.
Nikkei further reported that other Japanese distributors such as Idemitsu Kosan and Cosmo Energy Holdings haven’t been told by Aramco for a change in supply.
All three companies, Idemitsu Kosan, Cosmo Energy Holdings and JXTG have been told that there will be a few days of delay in the October shipments.
According to the outlet, “this suggests that Aramco is trying to test the waters first with its biggest customer in Japan.” Which is possible, but does it specifically make sense to “test the waters” with your most important client?
And Japanese distributors are attempting to find contingencies in case Aramco can’t recover, naturally from Russia or the US, or even the UAE. This is in case of the rumor being true and the Saudi company can’t recover quick enough.
“It is difficult to believe that Aramco’s production will be fully restored by the end of the month,” an unnamed JXTG executive said.
The September 14th attacks reduced Saudi Arabia’s production capacity by as much as 5.7 million barrels per day, or 5% of the global oil supply. Aramco pledged that production would return to 11 million bpd by the end of September.
The US and Saudi Arabia accused Iran for carrying out the attacks, Iran vehemently denies that it played any role in them. The Houthis in Yemen, against whom Saudi Arabia is leading an intervention against claimed responsibility, but have gone ignored.
Despite initially going on a warpath, the US and Saudi Arabia have done little in concrete actions.
The US sanctioned Iran’s central bank and National Development fund, for supporting the IRGC’s Quds Force, as well as Hezbollah and “terror proxies.”
Central Bank of Iran designation for support to Qods Force, Hizballah and terror proxies is first central bank designated by Treasury under counterterrorism authorities.
— Treasury Department (@USTreasury) September 20, 2019
Treasury sanctions Iran’s Central Bank and National Development Fund https://t.co/kDdMuJw9Uw
— Treasury Department (@USTreasury) September 20, 2019
“Iran’s brazen attack against Saudi Arabia is unacceptable. Treasury’s action targets a crucial funding mechanism that the Iranian regime uses to support its terrorist network, including the Qods Force, Hizballah, and other militants that spread terror and destabilize the region. The United States will continue its maximum pressure campaign against Iran’s repressive regime, which attempts to achieve its revolutionary agenda through regional aggression while squandering the country’s oil proceeds,” said Treasury Secretary Steven T. Mnuchin. “Iran’s Central Bank and the National Development Fund were ostensibly intended to safeguard the welfare of the Iranian people, but have been used instead by this corrupt regime to move Iran’s foreign currency reserves for terrorist proxies.”
“We are putting governments on notice that they are risking the integrity of their financial systems by continuing to work with the Iranian regime’s arm of terror finance, its Central Bank,” said Sigal Mandelker, Under Secretary for Terrorism and Financial Intelligence. “We will vigorously enforce our sanctions to cut off the Iranian regime’s funding of global terrorism and its domestic oppression of the Iranian people, who are the regime’s longest suffering victims.”
Essentially, the US is running out of institutions and officials to sanction in Iran, and these actions are more or less of no impact or consequence. It is the least the US does when it wants to exert some presumed pressure on its “victim.”
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The Saudis besides being liars are totally inept, they could not even fight the fires without western help and all the repair technicians are foreigners with their faces covered by masks. Billions of dollars worth of US, French and UK weapons have come to naught. The Saudis are an absolute disaster, and should seek better ties with Iran or their shaky kingdom will collapse.
It is in a state of collapse in fact. They can not win a war against Yemen? What else proof you need…
They have been fighting there since I remember. I still se no winners apart from the dead ones now finally has peace, if they are digged wel and deep.
Even Egyptians has been there.
They dony know how much is damaged. You are the one being stupid to expect it like boiling an egg.
Just dirt. I dont see Saudis as shaky, but true, they have big problems.
Saudi taking a much deserved and overdue beating.
Except for the cruise missile which felt short, probably fuel consumption miscalculation it all where perfect hits.
No loss of live only material damage,
Iran showing true proxy Yemen what the are capable off is quite a shocker for some :).
Yemen is not a proxy for Iran… prox·y /ˈpräksē/ Learn to pronounce noun 1. the authority to represent someone else, especially in voting. “they may register to vote by proxy” Similar: deputy representative substitute delegate agent surrogate stand-in attorney ambassador emissary go-between envoy frontman factor procurator 2. a figure that can be used to represent the value of something in a calculation. “the use of a US wealth measure as a proxy for the true worldwide measure”
Proxy… see USZOG… Yemen what a story, the most overwhelmed overmatched battle in 100 years and the Houthis are kicking our-US/SA/ISISrael ass.
https://en.wikipedia.org/wiki/Proxy_war
More like SA is proxy for US…like they have been all along. Yemen is fighting for their lives. Iran is their ally. Big difference.
Don’t forget Israel Saudi’s have been brown nosing Israel for years now.
Saudi = jew
Not at all. None of them, as many others, dont like You at all.
As far as I can remember, Central Bank of Iran and the Iran’s National Development Fund were both sanctioned before, on different excuses.
Did they just ran out of Iranian entities to sanction!? :D They restart the list.
There’s still you and me to sanction… Njews flash… “President tRump has just sanctioned commenters on Southfront. They can no longer trade with Iran… The harshest sanctions ever on internet users.”
Don’t know about you, but I’m in line to be sanctioned AGAIN in January!!
Not exactly sure what you mean… I can’t seem to stay on mass media accounts without getting booted.
Oh, nevermind! I don’t know why. This account is couple of years old and I use it only here. A year ago or two, I had a problem where many of my posts were reported as spam. A couple of times I sent emails to SF and each time my posts returned and then this problem suddenly stopped. I have not much experience on other social platforms. I opened a FaceBook account (my own name) maybe 10 years ago but never posted, shared or liked anything, I don’t know why I have an account at all. Don’t have a Twitter, Buzzfeed, instagram or whatever. If you’re accounts are constantly get closed, chances are someone is “reporting” you or you write some of the “trigger-word” (like Jew, Zionist on Spot.IM). On Disqus you can check it out to see if your comments are published or not, if they’re blocked you can send emails to the website mod, they’ll fix it. On Facebook I heard you need other people to write them and back you on the issue. Elsewhere I can’t be much of a help, sorry.
I really only reply on sites like RT, Veterans Today, Sputnik, Southfront, Russia Insider, Press TV… My favorite one of all is 153news… Of course Fakebook, Jootube and such are censored and controlled.
Ha-ha. Do you really think Disqus is not tracking you? It is property of the fastly.com, which is situated and registered in San Francisco. They have all of you, dude. :)
I’m not worried about being tracked, I tired of having my accounts closed for my comments.
Easy to understand, but You might change a few things. If things still dont work, You can make Your own country even You might be the only inhabitant.
You can go writing manyother places and only read and learn by that from here.
You may use the Telegram messenger and vk.com. Telegram is very hard to trace, while all vk.com servers are situated inside of Russia. But in vk.com they ban extremist post too, at least not as crazy as FB does.
The Saudi shitheads need to lose a couple of desalination plants pronto. No fucking water or oil and then lets see if their Americunt masters will sail an iceberg from Greenland :) for them after buying it from the Danish pastries.
Danish pastries, LOL.
Many things are possible. When England collapse after Brexit Danes will take over the Viking England part and let them rejoin EU wit us.
In the joke section many also might prefare all Saudis should go to Greenland.
Suprise! The autocratic, repressive, oligarch-clan run Saudi state and its completely controlled media lied about the scale and impact of the attack on its major asset site. Who would have guessed!
More like they didnt know.
I remember what real lies are. Fx when the Russian Kurks sunk not far away from Norway.
Do you seriously contest the Saudi media is a state controlled and repressive tool of the oligarch-clan-run-KSA-state ? Troll it on.
Hit the Saudi bastards again… and again…. and again…..
Yes, yes and yes and yes!
About one more Houthis attack like this one and the House of SODOM may have to seek exile in Israel…
At least 2 towers damaged at Khurais. https://uploads.disquscdn.com/images/2bc4dfbc576150161596200b0ab980f924b0d12b794f6cef18cc26928f0c0727.jpg 5 towers damaged at Adqaiq. https://uploads.disquscdn.com/images/a096523e357ace0fa1bd9ec8b1951eaada01c0522f63d37da9797cf4b158826b.jpg 2 of the 3 tanks north of there, this does not include the many tanks pictured before to the east. https://uploads.disquscdn.com/images/829f878dc44313676d8c56fb31a3c4b7bffed45f0b0120bfe7f7fdd61302e76f.jpg
Somewhere some rich guy is smiling to think of his company repairing this. Hazardous duty pay indeed. Spending all your money to crush neighbors has it’s risks.
I suspect it may take a year to recover – if there are no further attacks. One cannot just go to Walmart and buy this gear. It needs to be manufactured to Aramco’s special needs. These refineries were built over a period of decades.
Right now the Sauds are trying to mask the shortage, by selling stabilized oil out of storage. Including buying refined products so their refineries use less light sweet crude. Hence why they want to sell Japan more medium and heavy grade.
Thats very incorrect manipulation. Everybody in the world try to make damage control and even make money on the shortage at the same time.
Saudis after all are only 5%.
Other things will happen too. More windmills and solarelectricity will be made and installed faster, because they gets more money for electricity and for heating.
Many more will try to save energy by advanced tools as well as better insolation for heating and cooling as well.
Maybee we even should be more stockholders in those sectors.
You might be right. YOu might be wrong. They “only” has to copy the old system, but it make sense to at least upgrade the old parts.
Today You easy can order all parts from all parts of the world as well.
So we dont know.
Saudi Arabia with one of the largest and best funded and equipped militaries in the world cannot defeat the poorest Arab country, Yemen. In fact, even with famine and cholera decimating the people of Yemen, Yemen is winning the war and taking it to the homeland of the aggressor. The entire world has only admiration to the noble and indomitable people of Yemen.
Writing Yemen wins make no sense.
Yup, they hit the Fractonal towers, aka boilers witch is what they actually do, and collects the various wapor when it rises thru the colum (octane), etc, and its an big pience of metal and pipes everywhere even more inside, and they hit it, congrats, just what we hoped for, this isnt done over night, rest ashure, nope, and the tanks are one thing, this is much worse. I bet they are in tears, and gnashing theeths is the new normal in the Saudi-barbarian kingdoom.
And then we had the images, well, I have had cars that rusted, fast, so fast I could swear that if youI put your ears on to the metal, you could hear it rust, an sound like termites chewing woodpanels, hehe, gnashing thru the metal sheets, but the damaged eh…. things, did do that within just 2 days, hell, I have never seen anything rust that fast and they claimed it was an pipe part hit by an Missile, phleeeas, hehe, it may work on houswifes or politicians whom are basically idiots, by spear us, its just hillarious.
I wounder when will we see the rest, huh, in an month or two. Then we have the knuckeldragger from NY, the vilage idiot per excelance, refusing to talk to Iran, well, yeah, not easy to meet Men is it, jooho pissant, because Iranians have integrity Trump the Chimp never will mach, and can even talk in an way that makes em to be adults, not like shithead with an credibility rating far below an Pakistani used car saleman, we lie, steel and cheet, remeber. Yup, what could possibly go wrong.
peace
These appear to be stabilization towers, meant to take out natural gas and H2S, to make oil safe and sweet for shipment. Yes, they work on the same principal as fractional towers used in further refining. Oil stabilization is the choke point for making shipments.
“Quds forces and others”!? How about Al Nusra, and all other brand names for Wahhabis, main export product from Saudi Arabia, that are real terrorists and menace to entire mankind? How about that you fucking morons? You better be quiet, because you look smarter.
I do love the Russian sense of humour, plus, the wit of Maria Zakharova’
“…“We still remember the fantastic U.S. missiles that failed to hit a target more than a year ago, while now the brilliant U.S. air defense systems could not repel an attack,” Russian Foreign Ministry spokeswoman Maria Zakharova told a briefing on Friday. “These are all links in a chain…”
The rest of the article;
U.S. Ships More Air Defense Systems That Do Not Work To Saudi Arabia… https://www.moonofalabama.org/2019/09/us-ships-more-air-defense-systems-that-do-not-work-to-saudi-arabia.html
Saudi Arabia is blessed with the addition of 3 more Patriot Batteries and more is always better… This move to purchase the US systems was based on in depth analysis to determine the incremental benefits of the additional systems – analysis was provided by Incompetence House Consulting and Consulate, headquartered in Istanbul.
Incompetence House Consulting core competency is incompetence with no equal, and the group is the crown jewel of Saudi Arabian efforts at diversification from oil and gas. With 100% of Incompetence House’s revenue coming from consulting for the House of Saud, paid for by oil and gas export revenues, clearly diversification is a smashing success, like the Patriot systems.
Calculate additional benefit:
Success rate of 1 Patriot Battery – 0.00%
Success rate if all Patriot Batteries aimed at single target – 0.00%
Success rate if all Patriot Batteries plus 3 additional Batteries aimed at single target:
0.00% + 3 x 0.00% = 0.00%
Raytheon executives pointed out that the additional systems could not possibly make things worse and therefore, they could not possibly lose by purchasing the systems. This logic was so compelling it overwhelmed the Incompetency team and they immediately advised MbS to purchase.
Then once the papers signed and deal done, an Incompetence House consultant confides in a Raytheon executive that he was worried they did something right, which would ruin their perfect track record of absolutely disastrous outcomes.
The Raytheon executive replied “I promise you that you have nothing to worry about…”
Haha, brilliant and seems to have worked. Emporer’s New Clothes, the MIC version.
“We really only just want your money and could care less about your air defense” LOL
The big lines are easy to understand. Saudis makes and sell the products, they are able to produce. The rest of the world will try to produce, what they cant in Saudi-arabia today and for some time.
Nothing strange in Saudis can say, when the full production i back. We all can expect oilprices going up some.
Nice for me having a good scooter instead of an old car:)