Saudi Oil Refinery Attack Vs Iran - News Interns: Economic , International , Ranking, Pakistan News


Friday, September 20, 2019

Saudi Oil Refinery Attack Vs Iran

Saudi Oil Refinery Attack Vs Iran

Recently a piece of news came in headlines saying, Saudi State-owned company "Aramco" bombed by a drone. A few moments later, the Rebellious group of Yemen took the responsibility of the attack. As a saying "A deep calm and peace is a sign towards a big storm." Same happened with this news, just within a day the Saudi Stock Market fell by 2.3% and there another chaotic situation took birth. After the Saturday attack, on Sunday oil prices soared to decade's high overnight rise where the per barrel price has gone to $69 from $58 per barrel. The news took another unexpected turn when Saudia itself rejects Yemeni Statement and said as per their investigations Iran was involved behind this occurrence. However, Iran also rejected Saudi Blame. On one side, U.S and Saudi being Anti-Iranian group supported the narrative of war with Iran. Whereas on the other side, Turkey, China, and Russia showed their sympathies with Iran. (Also ReadUS-China Trade War) So, making this as simple as I could, "Attack on Saudi Oil Production gives a new pathway to curse Iran. However, this is something we are listening from a long past. The interesting thing is another tragedy, the time where the Global Economy is suffering from Trade Wars and are traveling towards recession. Another chapter of slowing down the economies get started. This is a condition where all the countries will face current account imbalances due to upcoming raise in oil prices in the nearby future. The cause will make an effect in the shape of a soar in Import bills. Especially, the emerging markets and Developing economies will face the challenges badly. The attack affected Saudia's 2nd biggest oil field which has the processing ability of 7 million barrel per day. For a fact, Saudi Arabia itself has the capacity to pump out 12 Million barrel per day. Aramco generates almost 10% of global oil supply. Do, this attack on Saudi State-owned enterprise is a warning for Saudia or it will open a new chapter of the war? The answer is yet to come.

Also Read: Why Jack Ma Resigned as Alibaba CEO

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