Archive for ‘drone attack’

21/09/2019

China, Russia, Iran ‘plan joint naval drill in international waters’

  • Iranian news outlet quotes military official as saying exercise will be held soon, but Chinese media silent on reported manoeuvres
An Iranian news source says China, Russia and Iran are planning a joint naval exercise soon. Photo: Xinhua
An Iranian news source says China, Russia and Iran are planning a joint naval exercise soon. Photo: Xinhua
China, Russia and Iran are planning a joint naval drill in the Sea of Oman and northern Indian Ocean “soon” a semi-official Iranian news outlet reported on Saturday, just days after the United States blamed Iran for a drone attack on Saudi Arabian oil facilities.
General Ghadir Nezami Pour, head of international affairs and defence diplomacy of the Iranian Armed Forces General Staff, said the drill would take place in international waters, Iran Press news agency reported.
“The exercises have different goals including the exchange of tactical and military experiences and sometimes they seek political goals which show a kind of convergence between participants,” he was quoted as saying.

“Officials at the level of defence minister, chief of staff of the armed forces and commanders of the armed forces will come to Iran in the near future and these actions reflect Iran’s active defence diplomacy.”

The comments came in the aftermath of the September 14 missile strikes on Saudi Arabia’s Abqaiq and Khurais oil facilities.

Washington accused Tehran of masterminding the attacks, allegations that Iran denied.

Tehran warned that any military action by the United States or Saudi Arabia would result in “all-out war”.

US Secretary of State Mike Pompeo initially condemned the attacks on the oil facilities as an “act of war” but later said the US was seeking a peaceful solution to the crisis.

On Friday, Chinese President Xi Jinping condemned the attacks during a phone conversation with Saudi Arabia’s King Salman, adding that he hoped the incident would receive a full and fair investigation.

There was no report of the joint drill plan in Chinese media.

Analysts said the exercise was possible as China might want to show support for Iran.

“The timing of the joint exercise might be a bit sensitive and some might take it as a show of China’s support for Iran should there be any military conflicts between countries,” Beijing-based naval expert Li Jie said.

“But it might well be a regular military exchange between the countries if it is held in international waters and without targeting another country.”

China calls for calm in aftermath of drone strikes on Saudi oil facilities

Ni Lexiong, a military specialist and professor at Shanghai University of Political Science and Law, said the drill was to send the message that China would side with Iran “in extreme scenarios”.

“I don’t see things will go that far, but the navy drill is to send the intimidating message,” Ni said.

Two years ago China and Iran conducted a joint naval exercise near the Strait of Hormuz in the Persian Gulf after Washington accused ­Tehran of sending fast attack boats to harass US warships passing through the area.

Major General Mohammad Baqeri, Chief of Staff of the Iranian Armed Forces, was in Beijing for a three-day visit earlier this month and agreed that the two countries would have more visits with senior military officials and advance cooperation in training.

China still accounts for more than half of Iran’s oil exports, according to the United States, complicating Washington’s efforts to economically isolate Tehran in its “maximum pressure campaign”.

Source: SCMP

19/08/2019

Oil rises after drone attack on Saudi field

LONDON (Reuters) – Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs that U.S.-China trade tensions could ease.

Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.

Brent crude LCOc1, the international benchmark for oil prices, was up 65 cents, or about 1.1%, at $59.29 a barrel at 1024 GMT,

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 61 cents, or 1.1%, at $55.48 a barrel.

A drone attack by Yemen’s Houthi group on an oilfield in eastern Saudi Arabia on Saturday caused a fire at a gas plant, adding to Middle East tensions, but state-run Saudi Aramco said oil production was not affected.

“The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia, but the premium might not sustain if it does not result in any supply disruptions,” said Giovanni Staunovo, oil analyst for UBS.

Tensions around Iran appeared to ease after Gibraltar released an Iranian tanker it seized in July though Tehran warned the United States against any new attempt to seize the tanker in open seas.

Concerns about a recession also limited crude price gains, as traders looked for signs of progress in U.S.-China trade talks.

Meanwhile, China’s announcement of key interest rate reforms over the weekend has fueled expectations of an imminent reduction in corporate borrowing costs in the struggling economy, boosting share prices on Monday.

U.S. energy firms this week increased the number of oil rigs operating for the first time in seven weeks despite plans by most producers to cut spending on new drilling this year.

“WTI in recent weeks has performed relatively better than Brent… Pipeline start ups in the United States have been supportive for WTI, while the ongoing trade war has had more of an impact on Brent,” said Warren Patterson, head of commodities strategy at Dutch bank ING.

The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd and indicated the market would be in slight surplus in 2020.

It is rare for OPEC to give a bearish forward view on the market outlook.

“Such a bearish prognosis will heap more pressure on OPEC to take further measures to support the market,” said Stephen Brennock of oil broker PVM.

Source: Reuters

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