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Saudi prince predicted a colossal rise in oil prices

Is the oil price war between Saudi Arabia & Russia ending? I Inside Story

Saudi prince predicted a colossal rise in oil prices

Saudi Arabia’s Crown Prince Mohammad bin Salman warned of astronomical oil prices in the event of escalation of tensions in the Persian Gulf, two weeks after his country was attacked by drones and missiles. Riyadh and Washington blame Iran for attack.

«Unless the world takes decisive action to contain Iran, we will see further escalation that will threaten global interests», – said the prince.

«Oil supplies will be disrupted and oil prices will jump to unimaginably high numbers that we have not seen in our lives.», – he continued.

Recall that on the morning of September 14, the two largest oil facilities of the oil giant Saudi Aramco were attacked, forcing Saudi Arabia to temporarily shut down about 50% of its production, or 5% of the world’s oil supply.. Next Monday Brent crude on the international benchmark rose 19.5% to $ 71.95 per barrel.

«The Middle East accounts for about 30% of the world‘s energy supplies, about 20% of world trade, about 4% of world GDP»,- told CBS Mohammad bin Salman, who is next in line to the Saudi throne and is considered the de facto ruler of the kingdom.

Energy industry experts give figures in the range from $ 100 to $ 150 per barrel oil if war breaks out in the east.

Aramco quickly promised that she will return its oil production to normal by the end of September.

Saudi prince predicted a colossal rise in oil prices

Yemeni Houthi rebels, fighting the Saudis since the kingdom launched a bloody assault on its southern neighbor in 2015, have claimed responsibility for the attack. But officials in the US, UK and Saudi Arabia argue that the rebels would not have been able to launch an attack of this magnitude and believe that it was not without Iran’s help.

Washington and Riyadh also blame Iran for a series of mysterious sabotage attacks on several foreign oil tankers in the Gulf near the Strait of Hormuz, a narrow pipeline that carries 30% of the world’s offshore oil.. Tehran denies these claims.

The attacks began shortly after the Donald Trump administration ended waivers for Iranian oil importing countries, amplifying the effect of sanctions imposed on Iran since late 2018 following the US withdrawal from the Iranian nuclear deal. Since then, hostility between Washington and Tehran has increased dramatically.

IN earlier interview with CNBC Saudi Arabia’s Minister of State for Foreign Affairs Adel al-Jubeir called the Aramco attacks an attack not only on Saudi Arabia, but on the entire international economy. Iran called for an independent investigation of these events and presented a draft Gulf Security Initiative excluding the United States.