A Reuters supply is reporting that Saudi Aramco’s Ras Tanura refinery, which is the biggest oil refinery within the Center East, was hit by a drone assault and compelled to close down as a precautionary measure. The supply did notice that the “scenario is below management” although.
Nevertheless, the strike continues to focus on the sort of disruption that’s hitting the oil market on the open. It isn’t simply all in regards to the Strait of Hormuz. There’s rigidity and fears everywhere in the area and oil refineries and tankers in every single place should be aware in regards to the scenario.
I might say it nonetheless is not clear what’s Iran’s playbook in all of this. You’d count on them to hit again at international locations with US presence however they appear to be simply attempting to create a disruption in every single place . Is all of it a ploy to try to trigger sufficient chaos in order that different international locations within the area need the assaults, together with these from the US and Israel, to cease? Maybe.
Oil costs stay elevated and have been arising after a little bit of revenue taking in Asia buying and selling earlier. WTI crude is now up almost 8% on the day once more at $72.68. With how a lot there was a premium within the run as much as the battle right here within the weeks earlier than, are we actually going to see oil hit above $100? Maintain a really, very shut watch on the Strait of Hormuz scenario.
