Iran Not ‘Drawing Back’ Militarily After Saudi Attack, Says US Admiral

The Iran-aligned Houthi militant group in Yemen has claimed responsibility for the September 14 attack.

Washington: Iran has not drawn back to a less threatening military posture in the region following the September 14 attack on Saudi Arabia, the top US admiral in the Middle East told Reuters, suggesting persistent concern despite a lull in violence.

“I don’t believe that they’re drawing back at all,” Vice Admiral Jim Malloy, commander of the US Navy’s Bahrain-based Fifth Fleet, said in an interview.

The United States, Saudi Arabia, Britain, France and Germany have publicly blamed the attack on Iran, which denies involvement in the strike on the world’s biggest crude oil-processing facility. The Iran-aligned Houthi militant group in Yemen has claimed responsibility.

Malloy did not comment on any US intelligence guiding his assessment. But he acknowledged that he monitored Iranian activities closely, when asked if he had seen any concerning movements of Iranian missiles in recent weeks.

Malloy said that he regularly tracks Iranian cruise and ballistic missile movements – “whether they’re moving to storage, away from storage.” He also monitors whether Iran’s mine laying capabilities head to distribution sites or away from them.

“I get a briefing of movements on a daily basis and then assessments as to what that could mean,” he said.

Relations between the United States and Iran have deteriorated sharply since President Donald Trump pulled out of the Iran nuclear accord last year and reimposed sanctions on its oil exports.

For months, Iranian officials issued veiled threats, saying that if Tehran was blocked from exporting oil, other countries would not be able to do so either.

However, Iran has denied any role in a series of attacks that have followed, including against tankers in the Gulf using limpet mines earlier this year.

“Deny It If You Can”

Asked what the latest attack in Saudi Arabia showed him, Malloy said, “From my perspective, it is a land-based version of what they did with the mines … quick, clandestine — deny it if you can.”

“Send a signal and harass and provoke,” he said.

His remarks came a week after the Pentagon announced it was sending four radar systems, a battery of Patriot missiles and about 200 support personnel to bolster Saudi defences – the latest in a series of US deployments to the region this year amid escalating tensions.

Still, the latest deployment was more limited than had been initially under consideration.

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Reuters has previously reported, for example, that the Pentagon eyed keeping an aircraft carrier in the Gulf region indefinitely, amid speculation that the USS Abraham Lincoln carrier strike group will soon need to wind up its deployment.

Malloy declined to speculate about future carrier deployments. But he acknowledged the tremendous value of aircraft carriers — as well as the ships in the strike groups that accompany an aircraft carrier.

That includes the contribution of destroyers now accompanying the USS Abraham Lincoln to a U.S.-led, multinational maritime effort known as Operation Sentinel.

It is meant to deter Iranian attacks at sea – and expose them if they occur.

Shining a Flash-point

“What Sentinel seeks to do is shine a flashlight across that and make sure that if anything happens in the maritime, they will be exposed for that activity,” he said.

This includes by providing a surveillance and communication backbone to share intelligence with nations that have agreed to participate, which include Britain, Australia, Bahrain, Saudi Arabia and the United Arab Emirates.

“We’ve created essentially a zone defence,” he said.

Washington first proposed the effort in the Gulf in June after accusing Iran of attacking oil tankers around the Strait of Hormuz, a critical maritime choke point. But the proposal was met with concern in some European capitals, already at odds with Washington over its withdrawal from the nuclear deal.

Malloy met Saudi Arabia’s naval commander on Sunday, assuring him of US support following the September 14th attack, which rattled global oil markets. He said US support included intelligence sharing. “We are constantly in the process of tightening that information flow with them,” Malloy said.

(Reuters)

Petrol Price Jumps By Rs 1.59/litre, Diesel Rs 1.31/litre After Saudi Attacks

Oil prices surged more than 15% to their highest level in nearly four months after an attack on Saudi Arabia’s oil facilities.

New Delhi: Petrol prices have soared by Rs 1.59 a litre and diesel by Rs 1.31 in the last six days – the most since daily price revision was introduced in 2017, as a massive strike at Saudi Arabian oil facilities jolted oil markets.

On Sunday, petrol price was hiked by 27 paise to Rs 73.62 a litre in the Delhi market – the benchmark for national rates, according to a price notification by state-owned oil firms. Price of diesel was increased by 18 paise to Rs 66.74 per litre in Delhi.

This is the sixth straight daily increase and has taken the cumulative price hike since September 17 to Rs 1.59 per litre in case of petrol and Rs 1.31 for diesel.

Global oil prices shot up the most since the Gulf war in the immediate aftermath of the unprecedented drone missile strikes on key oil facilities in Saudi Arabia that disable 5% of the global supply. Oil prices have cooled since the spike on September 16 but remains on the edge.

Attackers using low-flying drones and cruise missiles knocked out 5.7 million barrels of production, or about 60% of what Saudi Arabia currently produces. It was the largest supply disruption in history. On Monday, Brent oil futures soared 15%. Analysts have warned that the style of the attacks on Saudi Aramco’s Abqaiq and Khurais oil facilities may add a permanent risk premium to oil and gasoline prices.

Also read: Petrol Price Hiked Up to 25 Paise on Back of Turmoil in Global Oil Markets

While Saudi Arabia is saying that it can quickly bring supply back online, experts say the shock to the global oil market will be felt for years. India depends on Saudi Arabia for a fifth of its oil imports and has been in constant touch with Kingdom officials on securing its supplies.

Oil Minister Dharmendra Pradhan, on Thursday, spoke to Saudi Arabia’s new oil minister Prince Abdulaziz bin Salman to discuss the supply plan. Saudi Arabia, according to Pradhan, has assured India of meeting all its committed oil supplies. Saudi Arabia, which is India’s second-largest oil supplier, sells close to 2 million tonnes of crude every month. Of this, 1.2-1.3 million tonnes of supplies for September have already been taken and the rest too has been assured. Pradhan also said that there will be no effect on oil distribution and supply in the country following attacks on the oil stabilisation centres of Saudi oil giant Aramco.

“It is unfortunate that the oil stabilisation centres of Aramco have been attacked. Following the attacks, top executives of Aramco have been contacted. Indian Ambassador in Riyadh contacted the senior management of Aramco to ensure a steady supply to India,” Pradhan added. “We have reviewed our overall crude oil supplies for the month of September with our Oil Marketing Companies (OMCs). We are confident there would be no supply disruption to India. We are closely monitoring the evolving situation.”
However, Saudi has sought deferment of some LPG supplies, but they have assured to make up for all the quantities, Indian Oil Corp (IOC) Chairman Sanjiv Singh said, adding any shortfall can be bought from Qatar.

Bharat Petroleum Corp Ltd (BPCL) has already tendered for import of LPG in October, possibly to make up for the shortfall from Saudi Arabia. India buys around 2,00,000 tonnes of LPG every month from Saudi Arabia. Industry sources said Saudi Arabia has cut throughput at its refineries to meet its crude oil supply commitments.

India imports 83% of its oil needs, with Saudi Arabia supplying a fifth of the purchases. Saudi Arabia is its second-biggest supplier after Iraq. It sold 40.33 million tonnes of crude oil to India in 2018-19 fiscal, when the country had imported 207.3 million tonnes of oil. China, South Korea, Japan and India are the biggest takers of the Saudi oil in Asia, with China and Japan leading the pack at an average of 900-1,100 kilo barrels per day each. India could be most exposed as its reserves are the lowest.

Petrol Price Hiked Up to 25 Paise on Back of Turmoil in Global Oil Markets

This is the steepest hike in fuel prices in over two months.

New Delhi: Fuel prices were hiked by up to 25 paise per litre on Wednesday, the largest single-day increase in almost three months, even as global oil markets were roiled from the attack on Saudi Arabia’s crude oil facilities.

According to information put out by state-owned fuel retailers, in the national capital, the price of petrol was increased by 25 paise per litre to Rs 72.42 while diesel was hiked by 24 paise to Rs 65.82.

The price of auto fuel in the Delhi market is considered a national benchmark. Data put out by Indian Oil Corporation indicated that the price of petrol in Kolkata was Rs 75.14, Rs 78.1 in Mumbai and Rs 75.26 per litre in Chennai.

This is the biggest single-day hike since July 5, which is when finance minister Nirmala Sitharaman’s budget effectively raised rates by almost Rs 2.50 a litre due to an increase in excise duty on auto fuel.

The hike on Wednesday followed a 14 paise a litre increase in price of petrol on Tuesday and 15 paise per litre rise in diesel rate.

Also read: Saudi Oil Blast: Iran Dismisses US Claim of Conspiracy, ‘Prepares For War’

Following the drone strikes on Saturday, international oil prices rallied nearly 20% on Monday in intraday trading – the biggest jump in almost 30 years – as the attacks reportedly reduced up to half of Saudi Arabia’s output.

Rates have in subsequent two days retreated, conceding about half of the gains. Brent crude future on Wednesday dipped 0.26% to $64.38 per barrel after jumping to near $72 in reaction to the disruption. US West Texas Intermediate (WTI) crude lost 0.5% to $59.06 per barrel.

This came after signs that Saudi Arabia was quickly restoring production at Abqaiq facility. Abqaiq is now processing about 2 million barrels a day and should return to pre-attack levels of about 4.9 million barrels by the end of September, Saudi Aramco chief executive Amin Nasser said.

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Saudi Crown Prince Mohammed bin Salman has reportedly stated that two-thirds of production has been restored and the kingdom sees a full recovery in 10 days.

Oil minister Dharmendra Pradhan on Tuesday said India, the world’s third-largest oil consumer, is keeping a close watch on the developing situation.

India imports 83% of its oil needs, with Saudi Arabia supplying a fifth of these. Saudi Arabia is its second-biggest supplier after Iraq. It sold 40.33 million tonne of crude to India in 2018-19 fiscal, when the country had imported 207.3 million tonne of oil.

(With inputs from PTI)