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Saudi Aramco CEO: Oil attack was huge, but we managed to restore capacity

Saudi Aramco CEO: Oil attack was huge, but we managed to restore capacity


LET’S BRING IN TWO OF THE TOP NAMES IN THE ENERGY SECTOR, MANAGING DIRECTOR FOR OPPENHEIMER, TIM REDMOND. GUYS, SPECIFICALLY WHAT HAPPENS NEXT. AND, TIM, YOU WERE OPERATING OFF THE ASSUMPTION YESTERDAY THAT OF THIS NEARLY SIX MILLION BARRELS THAT WERE TAKEN OFFLINE OVER THE WEEKEND, THAT ABOUT TWO WOULD BE BACK ONLINE SOON, AND THAT’S THE NEWS WE GOT TODAY. WHAT’S THE NEXT PIECE OF NEWS, AND SINCE YOU’RE GOOD AT PREDICTING, WHAT WILL THAT BE?>>I THINK THE BIGGEST UNCERTAINTY IS WHAT, IF ANY, RETALIATION WILL HAPPEN. IS THAT GOING TO BE A SAUDI-LED ATTACK? IS THERE GOING TO BE A BROADER COALITION PUT IN PLACE, AND I THINK THAT IS THE NEXT SHOE TO DROP RIGHT NOW. THE MOVE LOOKS DRAMATIC OVER TWO DAYS IN WTI, BUT IF YOU LOOK INTO THE FUTURE, IT’S REALLY ONLY UP ABOUT $2 A BARREL. YOU’VE SEEN A LITTLE POP ON THE FRONT END, BUT THIS ISN’T A GAME-CHANGING MOVE ACROSS THE WHOLE DURATION OF THE FUTURE STRIP. LIZ: PENNSYLVANIA VEL, YOU WERE SURPRISED — PAVEL, YOU WERE SURPRISED AT THE SPEED, BUT THE SAUDIS HAD A LOT OF BUILT-IN REDUNDANCY E IN ANTICIPATION OF ANYTHING COMING OFFLINE FOR WHATEVER REASON, SO IMMEDIATELY THEY WERE ABLE TO AT LEAST SHIFT OVER TO SOME DIFFERENT PIPELINES, ETC. TELL ME YOUR SENSE OF WHAT’S HAPPENING ON THE GROUND IN SAUDI ARABIA. THEY’RE ACTING VERY CALM, EVERYTHING’S FINE, DON’T WORRY, THE ARAMCO IPO’S GOING TO HAPPEN IN THE NEXT 12 MONTHS, BUT WHAT ARE YOU HEARING?>>WELL, LOOK, ANYTHING SAUDI ARAMCO SAYS WE NEED TO TAKE WITH A GRAIN OF SALT. THEY WANT TO GO PUBLIC PARTLY FOR THAT REASON. THEY WANT TO SEND THIS MESSAGE OF CONFIDENCE TO THE MARKET, REASSURANCE. I THINK WE OUGHT TO BE SKEPTICAL. LOOK, THIS IS HIGHLY SOPHISTICATED ENERGY INFRASTRUCTURE. THIS IS NOT JUST BLOWING UP A PIPELINE AS HAPPENS IN PLACE LIKE NIGERIA. THIS IS THE WORLD’S BIGGEST OIL PROCESSING FACILITY. YES, THERE IS REDUNDANCY, BUT THEY WILL HAVE TO GET REPAIR EQUIPMENT CUSTOM MADE MACHINERY IMPORTED FROM ABROAD, DELIVERED, INSTALLED. NONE OF THAT IS GOING TO BE DONE INSTANTANEOUSLY, AND WHATEVER ARAMCO SAYS ABOUT THE TIMETABLE, WE WOULD TAKE THE OVER IN TERMS OF THE DURATION. LIZ: INTERESTING. TIM, WEST TEXAS YESTERDAY SETTLED AT AROUND $62.90. THAT WAS A GAIN OF 14.6%. TODAY WE CAN SEE WE’VE PULLED BACK, AND IT’S HARDLY ANYWHERE NEAR THAT HUGE PERCENTAGE. IS THIS A SHORTING OPPORTUNITY? WHERE WOULD YOU BE TRADING THIS KIND OF MOVE?>>NO, I DON’T THINK IT’S A SHORT OPPORTUNITY BECAUSE LOOKING FORWARD THERE IS SO MUCH POLITICAL RISK THAT YOU’VE HAD. YOU KNOW, YOU HAVE HEARD THIS PHRASE PUT OUT IN THE PUBLIC ABOUT A RISK PREMIUM NOW PUT IN CRUDE. THERE WAS MAYBE A LITTLE LAISSEZ-FAIRE ATTITUDE ABOUT SUPPLY AND POSSIBLY AN OVERSUPPLY SITUATION. NOW IT LOOK LIKE THE SAUDI DISRUPTION, MAYBE A COUPLE MILLION BARRELS A DAY FOR TWO WEEKS, THAT’S 40 MILLION IN AGGREGATE, WE THOUGHT IT COULD BE MANY MULTIPLES OF THAT JUST LAST NIGHT. I THINK THAT RISK PREMIUM IS THERE RIGHT NOW, AND I THINK THAT WILL SUPPORT THIS MODEL LASTLY — MODEST RALLY WE’VE SEEN. LIZ: WHAT WOULD YOU PICK, TIM? WHAT ARE THE NAILS YOU REALLY LIKE?>>ON THE LARGE CAP SIDE IS NOBLE ENERGY. IT’S BEEN A REAL UNDERPERFORMER THIS WEEK BECAUSE THE COMPANY HAS EXPOSURE IN ISRAEL. HOWEVER, 76% OF THE PRODUCTION COMES FROM THE U.S. 90% IS OUTSIDE ISRAEL. THAT’S ONE WE LIKE ON THE LARGE CAP. LIZ: AND, PAVEL, WHAT ARE YOUR PICKS? IT’S JUST HITTING THE TAPE THAT THE ISRAELI ELECTION EXIT POLLS ARE SHOWING THAT THE PRESIDENTIAL RACE — REMEMBER, THEY HAD THE PRIME MINISTER RACE, THEY HAD TO REDO IT, TOO CLOSE TO CALL AT THIS MOMENT. WE HAVE A PREDICTION THAT NETANYAHU AND GANZ, HIS COMPETITOR, FALL SHORT OF THE MAJORITY, 61 SEATS. PAVEL, WHAT ARE YOUR PICKS?>>OCCIDENTAL. INTERESTINGLY ENOUGH, A COMPANY LIKE NOBLE ALSO HAS SOME EXPOSURE IN THE MIDDLE EAST, SPECIFICALLY THE PERSIAN GULF. IT’S PREDOMINANTLY IN THE UNITED STATES AS WELL. OCCI, OF COURSE, BOUGHT ANADARKO NOT LONG AGO AND AS A RESULT OF THAT DEAL TOOK A HIT, TRADING AT ITS LOWEST LEVELS IN ABOUT A DECADE WITH A DIVIDEND YIELD OF 7% WHICH WE THINK IS VERY SAFE. THAT’S, BY THE WAY, THREE TIMES THE DIVIDEND YIELD OF THE S&P 500. NOW, ON THE SMALL CAP SIDE, CALIFORNIA RESOURCES, CRC, THAT’S A HIGH — LIZ: IT’S DOWN 13%. DEFINITELY CHEAPER TODAY.>>DOUBLE-DIGIT MOVES ON DAYS LIKE TODAY. LIZ: GREAT TO SEE BOTH OF YOU, WE APPRECIATE YOUR EXPERTISE IN ALL OF THIS, AND I AGREE WITH

Comments (65)

  1. Uh Huh….Iran….right, they did it or whatever…. pfft. No Body Believes You

  2. Israel shot missles from Syria last week ..hmmmm

  3. Its war, they better be prepared

  4. Everybody calm down now……..It`s not like the Saudi`s did this themselves for HUGE Profits. …………..Wait a minute……. ;o)

  5. i guarantee you every valve company world wide has already put on planes any inventory they had that the saudis need.and as soon as the saudis figure out what they need if it is not in stock or can not be borrowed the companies will be braking records to make. and i also bet the air force will be moving anything that can't be chartered immediately ! sales managers and shop foreman have been up non stop to fill the gap because money will be no object in this!

  6. So "huge" they put it down before the Amazonian fires. It's a scam, headchoppers need the price to rise, their war against Yemen using US weapons is expensive

  7. Iran is in big trouble! Shàlom🇺🇸…..💥

  8. American made the Patriot defense system failed miserably!! No one talks about it. Why?!

  9. More utter BS from US corporate criminals

  10. Must Nigeria 🇳🇬 be mentioned for any negative things…. What's wrong with this guys…, there's pipe vandalism all over the world 🌏

  11. im not sure america help saudi in times of war because war its not a part of business deal and infrastructure

  12. fake news, won’t be fixed until late November. not telling truth

  13. Iranians are cowards

  14. In 1979 I worked in a Hat Factory in Australia. And we Manufactured 100,000 Grey Caps for ARAMCO.
    I can not believe they are still around and Ripping me off with Petrol Prices.
    Australia's Petrol is around $9.25 per Gallon or $1.85 per Litre. BLOODY RIP OFF.
    Please post your Petrol Prices against this Comment.

  15. In simple they are trying to say, The Game in Middle East Will Change Again, and there will be war between Saudi and Iran backed by US.

  16. no one wants to take on Iran because of those tomcats prowling around

  17. Pavel looks like a homeless guy they dragged off the street and hastily pun him in a suite 🤦🏻‍♂️🤷🏻‍♂️😂

  18. It soo unfortunate to live in a world where oil is more important than human life. Women, children and innocent men are dying everyday by the Saudi's attacks on Yemen and all Saudi allies only think and care about the two attacks on oil facilities? "RIP" humanity

  19. How Saudi Arabia could restore all it's oil attack's?
    Wow Saudi RESTORED and REPAID for the attack's. That's why Asia market COLLAPSED.

    The 9/11 enemies COLLAPSED and all the investment and shares RECOVERED and banned the enemies from WEF, WTO, World Bank operation's and trade/commerce.

  20. Saudi Oil Field Attack Originated by Israeli Prime Minister Benjamin Netanyahu with the help of USA its same story / propaganda revised by two nions as against Iraq World need to understand. Before going to any conclusion need to investigate and find solid proves world not need to believe politicians word of lie.

    Us intelligence has no physical evidence to prove their accusations against Iran they just want another war to sell their amortization. USA Policy scare the world and make money. from 200 years USA always in war somewhere somehow in the world their economy run on war.

  21. It is done by USA and Israel 👿👿👿👿👿 huge slap for trump and Israeli prime minister

  22. Still waiting for Jane Standley here..

  23. All the governments and their stupid carbon taxes want the price of oil to rise because they get more and more taxes.

  24. Haha Iran you tried you fail

  25. The 'Attack' was carried out by Trump and the Saudis themselves WAKE UP PEOPLE! It was an attempt to get the people of Israel riled and nervous about an Arab war with Iran and therefore to the polls and voting for his great buddy "B.B" for crying out loud …and it worked

  26. America sanctioned iran….IRAN JUST SANCTIONED THE WORLD!

  27. The Rothschild/Bolsheviks do NOT want the United States to be Energy Independent!!!!!!!

  28. I don’t care 🤷‍♀️ 🤷‍♂️ because I drive a Tesla, just make sure my roads are smooth.

  29. "Saudi Aramco CEO: Oil attack was huge, but we managed to restore capacity…" congratulations! how will you deal with the next attack? … and the next? … The Saudis' Achilles' heel. And it cannot be defended … time to talk?

  30. Curly of the Three Stooges calls this Papaganda.

  31. not 1 oz OF oil IS WORTH 1 AMERICAN SERVICE MAN, LET THE SAUDIS WORK THIS OUT

  32. The question will ultimately be whether or not Trump will fall prey to the Intel Agencies "Deep State" last ploy to garner support for another bloody, wasteful, and senseless war before the next election.

  33. Iran is not our enemy. Israel and US are the real enemy of Humanity. Only Israel in this region can do such things.

  34. Best thing is , Its no longer our Problem. let the middle east can handle their own business.

  35. WHERE İS THE PATRİOT ?

  36. Ever wonder if the drones were from Israel? It’s been prodding for a war with Iran for years.

  37. Doesn't concern US in the US, we have our own oil and we now Export, thanks for the profits Iran.

  38. 🔴Why attack a democracy like Saudi Arabia? It’s envy folks. Saudis are good people, it’s not like they’re cutting people’s heads or whipping people🤣😭😂😁🙄🤦‍♂️

  39. Lots of flames, lots of smoke. NO tank "blew up". Several were repaired. What a courteous, minimalist "attack" that was. Qui bono? Who benefits? Just anudda game show? Popcorn!

  40. what's up with the tie?

  41. what happen to Omar brother.

  42. They better figure out how to protect their plants !

  43. Just an excuse to raise prices

  44. **NO MORE WARS FOR ISRAEL**

  45. I thought immediately these two dont know crap.

  46. The Great Trumpster has everything under control…

  47. Saudi's have plenty of resources to produce crude, they have been understating production for many years
    However, this attack provides an opportunity to manipulate world crude prices,
    What is not being said, by media, is the buffering effect US petroleum production has had on consumers,
    My opinion, the players at Big oil, retired very very rich, turned the keys over to bean counters, administrative types, lacking on trading skills

  48. What are all the oil producing countries going to do when we run out of oil? I will be in my grave but really what is the contingency plan as a lot of people know we will run out of oil. Is the plan to be on other planets by then and can we count on that as definite?

  49. So…it wasn't as bad as you said? But you still want American military to start a war? Not today globalists.

  50. Putin is offering to sell the Saudis the S3 Defence System! Funny, why was it not protected? WHO DONE IT???? Who wants a war with Iran?

  51. What they meant was "Saudi Aramco made a fortune in a struggling oil market on massive insurance claims paid out at today's inflated market rate". Well played House of Saud. That's why you're still in power.

  52. PRAYING JESUS, HELP US UNDERSTAND/RECEIVE YOUR LOVE, FORGIVENESS AND PRAYER IN THE JUST AND THE UNJUST EVENTS/ACTIONS IN OUR PERSONAL/PROFESSIONAL LIVES, HOW YOU WILL RECONCILE ALL-THINGS TO YOUR JUSTICE,,, JESUS TEACH US TO TRUST YOU AND YOU WILL GROW OUR FAITH, TO BELIEVE YOU ANSWER ALL PRAYER WITH YOUR YES,,, JESUS HELP US SET OUR DARKEST FEARS AND OUR MOST UNFORGIVABLE ACTS, AND THOSE ACTS/ACTIONS AGAINST US, OUR FAMILIES/COWORKERS AT YOUR ALTER AND WE WILL BE ALTERED,,, JESUS TEACH US THE ACTS OF BETRAYAL OF TRUST OF ONES TRUSTED, LEAVES DEEP WOUNDS AND THE ONLY THING THAT CAN HEAL THOSE WOUNDS IS THE BLOOD AND THE WATER OF CHRIST POURED OUT/OVER THE WOUND, AT THE CROSS AND HELP US RECEIVE,,, JESUS HELP US RECEIVE YOUR EVERY INCREASING QUALITIES,''WITHOUT MEASURE'' OF YOUR LOVE, FORGIVENESS AND PRAYERS FOR THESE WOUNDS AND DEEDS OF DARKNESS, AND OUR FREEDOM WILL COME,,, JESUS YOU WILL HOLD THE PERPETRATOR ACCOUNTABLE AND SET US FREE, ''PERSONAL/PROFESSIONAL REVIVAL'', STARTS IN US, WITH YOU… I AMen

  53. Babblers. All that got hit was oil storage tanks.

  54. If i provide a service for a dollar and haft to replace a little part on my service im not going to charge you moor

  55. Time for every country to take control of there own energy production…
    If you're not 'blessed' with your own lakes of carbon…
    Time to go green…like can you imagine if the Saudi's had gone nuclear for their energy requirements?.
    Solar and wind are the only safe reliable sources of energy…that's unless you are sitting on a lake of carbon.

  56. You can talk as much as you want… If the prices rose, then the damage is done.

  57. The most important thing that we learn from this attack is that the multi billion dollars defence system that the Saudis bought from the US is useless. It could not detect the arrival of the drones/missiles, let alone shot them down.

  58. saudi aramco attack in Iran or the huts did not. this is an attack that the american personally planned and made.

  59. Nothing is going to happen. This is more media rhetoric by the media. No war. Just all talk.

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