Tom Kirkman

Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories

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On 5/16/2019 at 9:09 PM, Jan van Eck said:

Of course this was the handiwork of Iranian commandos.  They are sending a message to the ship and cargo insurers in London, mostly at Lloyd's of London:   Watch out, we can and will whack your insureds.   Now, what happens?  The Insurers will be raising the premiums, and that will add several dollars per barrel onto the price of gulf crude.  See, two can play the price game.  The US tries to force the Iranians to leave money at the table, having to discount their oil to move the stuff.  Now they are doing the same to the others, specifically the Saudis and those who buy from them, and the shipowners that will move those cargoes.  You don't have to sink anything or bust open a tank and make a big mess to send insurance premiums soaring.  It will motivate buyers to start looking to Nigeria and Angola and Russia as sources for crude.  You can hurt the Saudis and force them to leave money at the table just by busting open some shell plating.  The Insurers will do the rest. 

Jan van Eck,

Great knowledge there and a very insightful post. I think you have just nailed whats actually been happening Are you the Jan van Eck ?

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One important fact that links the two attacks on the oil tankers off the coast of Fujairah and on the East-West pipeline pumping stations in the heart of Saudi Arabia is that both attacks targeted the only alternative passages for Emirati and Saudi to export oil to the world outside the strait of Hurmuz bottleneck. 

It is known that the UAE has two oil exporting terminals at the ports of Al-Ruwais (primary) on the Persian Gulf and Fujairah (secondary) on the Arabian sea and Saudi Arabia similarly has two exporting terminals at the ports of Ras-Tanura (primary) on the Persian Gulf and Yanbu (secondary) on the red sea. For both countries, Fujairah and Yanbu are the two main terminals that will be left for oil exports in case the strait of Hurmuz is closed as the Iranian have repeatedly threatened.

This link seems to be crucial clue to understanding the two seemingly separate attacks under the context of the current crises in the region and amidst the beats of war drums.  

E-W and Fujairah pipelines.jpg

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