Article

The tensions between Saudi Arabia/UAE and Iran seem to be heading for a new showdown, as the media hype during the weekend has shown. Not only have unknown assailants attacked several oil tankers offshore the port of Fujairah, but drones now seem to have been targeting oil pumping stations nearby Riyadh. Two days after a news bombardment about a possible attack on 4 vessels, of which two were Saudi oil tankers, the attention shifted to the dual drone attack on two pumping stations of Saudi Aramco’s major oil pipeline connecting the Eastern Province with the Red Sea. Saudi Minister of oil, Khalid Al Falih stated to the press that the attack on two oil pumping stations has not disrupted oil production or exports of crude and petroleum products.

U.S. sanctions on Iran are now really starting to bite. In contrast to what European media portray, Iran’s oil and gas exports are plunging. Tehran’s ability to supply its Asian customer base has been largely blocked, as Washington has decided not to extend the waivers given to China, India or others to keep on signing crude contracts.

The summer of 2019 could be a watershed moment in global commodity markets. The next couple of months, could see a major reshuffle of global commodity trade and financial markets as a structured Arab strategy is kicking in.

International geopolitical discourse lately has been looking at the growing impact of China’s One Belt One Road initiative in Asia, Middle East and Europe. Mainstream media has extensively assessed the influence of China’s economic power projections in the targeted regions, with specific focus on the financial power of Beijing to change alliances and regional constellations.

The ongoing turf war between U.S. president Donald Trump and OPEC+ where the oil market needs to be heading is again heating up. With a barrage of accusations, Trump has resorted again to Twitter to call upon OPEC+ to reopen its valves and bring more crude on to the market to counter increasing prices.