Saudi Arabia Moves Toward Cease-Fire with Yemen
September 27th, 2019
Saudi Arabia is moving towards a partial cease-fire in Yemen. This is an attempt to ease the tension in the Middle East.
China and the US have also schedule to talk again in mid-October, which is seen as good news for the markets. This news along with the action by Saudi Arabia is helping to a bit of selling pressure on prices.
On the bullish side of the market we have the following news. Energy market rose into the close yesterday as the Pentagon announce that it would deploy equipment and personnel to the Middle East to help prevent attacks on Saudi Arabia. The US will deploy 1 patriot battery, 4 sentinel RADARs, and approximately 200 support personnel to Saudi Arabia according to a press release from the US Department of Defense.
Saudi Arabia has restored its oil production capacity to 11.3 million bpd following the attacks on its oil facilities. It continues to stress that it aims to achieve full production of 12 million bpd by the end of November. Crude output form Khurais field is now at 1.3 million bpd and Abqaiq plant is currently at about 4.9 million bpd. According to a Financial Time report, Saudi Arabia’s has utilized its offshore spare capacity and repaired some processing units at Abqaiq.
A UN IAEA report showed that Iran has committed a further breach of its nuclear deal with major powers by enriching uranium with advanced centrifuges and plans to install more of those advanced centrifuges than previously announced.
Iran has released the British-flagged tanker Steno Impero that it seized and held for 10 weeks. The ship is said to have made it to international waters.