Saudi Arabia: 'Not Responsible' For Oil Shortages After Attack

The Saudi Arabian foreign ministry has release a statement appearing to step back from increasing oil production following an attack by Iran backed Houthi rebels on the Yanbu Aramco Sinopec Refinery yesterday.

• The statement said the Kingdom no longer has 'responsibility for any shortage in oil supplies to global markets in light of the attacks on its oil facilities.'
• The statement also calls for recognition that 'Iranian backed militants' actively 'target the kingdom's production sites of oil, gas and refined products, resulting in serious consequences for upstream and downstream sectors affecting the kingdom's production capability and it's ability to fulfill its commitments, undermining without a doubt, the security and sustainability of energy supplies to global markets.'
• According to S&P Global data: 'only 80,000 b/d of output has been lost on average in Saudi over the last five years. The kingdom has capacity to pump over 12 million b/d of crude.'
• The development comes as the US continues to push the Kingdom to increase production. Biden administration officials visited Riyadh on February 17 and State Department spokesman Ned Price confirmed this week that the White House is ‘…in touch with our Saudi partners on a daily basis.’
• Saudi Arabia and, their Gulf partner the UAE, remains adamant that the US should re-designate the Houthis as a terrorist organisation. It is unlikely that the standoff over oil production will be resolved until this US foreign policy pivot takes place.