{"id":46983,"date":"2019-06-29T06:55:07","date_gmt":"2019-06-29T11:55:07","guid":{"rendered":"https:\/\/olduvai.ca\/?p=46983"},"modified":"2019-06-29T06:55:13","modified_gmt":"2019-06-29T11:55:13","slug":"the-oil-crisis-saudi-arabia-cant-solve","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=46983","title":{"rendered":"The Oil Crisis Saudi Arabia Can&#8217;t Solve"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/The-Oil-Crisis-Saudi-Arabia-Cant-Solve.html\">The Oil Crisis Saudi Arabia Can&#8217;t Solve<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/article\/718x300\/05b5880850b025f201b409da7450b4b5.jpg\" alt=\"Middle East\"\/><\/figure>\n\n\n\n<p>Saudi Arabia\u2019s CEO Amin Nasr\u2019s&nbsp;<a href=\"https:\/\/oilprice.com\/Energy\/Crude-Oil\/Saudi-Aramco-Says-Its-Ready-For-Strait-Of-Hormuz-Disruption.html\">message to the press<\/a>&nbsp;that oil flows to the market are guaranteed, should be taken with a pinch of salt.<\/p>\n\n\n\n<p>Looking at the current volatility in the Persian\/Arabian Gulf and the possibility of a temporary closure of the Strait of Hormuz, the Aramco CEO\u2019s message might be a bit overoptimistic. In reality, Aramco will not be able to keep the necessary crude oil and products volumes flowing to Asian and European markets in the case of a full Strait of Hormuz blockade. Even that Aramco owns and operates a crude oil pipeline with a capacity of 5 million bpd, carrying crude 1,200 kilometers between the Arabian Gulf and Red Sea, much more is needed to keep the oil market stable.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Nasr\u2019s move to stabilize the market is praiseworthy but should be seen as an attempt to quell fears of traders and financial analysts, especially&nbsp;<a href=\"https:\/\/oilprice.com\/Energy\/Energy-General\/Middle-East-Tensions-Move-Oil-Prices-Higher.html\">just before the OPEC+ meeting in Vienna<\/a>next week. Nasr reiterated that Aramco (aka the Kingdom) is able to supply sufficient crude through the Red Sea, reiterating that the necessary pipeline and terminal infrastructure is there. However, what analysts tend to forget, Nasr\u2019s statement is only linked to Saudi\u2019s oil export volumes, which will likely be not higher this summer than around the level this pipeline can support. The real issue, if it comes to a full-blown conflict, is that not only Saudi oil is being threatened.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/d32r1sh890xpii.cloudfront.net\/tinymce\/2019-06\/1561674432-o_1dedgpevc1tnpkcnn10gkamee8.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/tinymce\/2019-06\/1561674432-o_1dedgpevc1tnpkcnn10gkamee8.png\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/d32r1sh890xpii.cloudfront.net\/tinymce\/2019-06\/1561674450-o_1dedgpuu6q9e1c6lvqm1qmperq8.png\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/d32r1sh890xpii.cloudfront.net\/tinymce\/2019-06\/1561674450-o_1dedgpuu6q9e1c6lvqm1qmperq8.png\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<p>At present, between 20-21 million bpd of crude and petroleum products are transported via the Strait of Hormuz. Saudi exports are a vast part of it, but also the UAE, Iraq, Kuwait, Bahrain, Qatar and Iran, will have to look at additional routes. <\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Oil Crisis Saudi Arabia Can&#8217;t Solve Saudi Arabia\u2019s CEO Amin Nasr\u2019s&nbsp;message to the press&nbsp;that oil flows to the market are guaranteed, should be taken with a pinch of salt. Looking at the current volatility in the Persian\/Arabian Gulf and the possibility of a temporary closure of the Strait of Hormuz, the Aramco CEO\u2019s message [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3,5],"tags":[26169,11583,15095,441,23083],"class_list":["post-46983","post","type-post","status-publish","format-standard","hentry","category-energy-2","category-geopolitics","tag-amin-nasr","tag-aramco","tag-cyril-widdershoven","tag-iran","tag-oil-price-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46983"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46983\/revisions"}],"predecessor-version":[{"id":46984,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/46983\/revisions\/46984"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}