Posted on 03/29/2015 4:24:06 AM PDT by thackney
Q: Why is Yemen important to the world oil market?
Yemen is only a small oil producer, but it lies at the heart of some of the most important energy routes. It shares a long border with southwest Saudi Arabia, world’s top oil exporter, and is adjacent to the Bab el-Mandeb strait, the fourth-biggest shipping chokepoint in the world by volume. About 3.8 million barrels a day of petroleum passed through the strait in 2013, according to the U.S. Energy Information Administration. Closing the strait could keep tankers in the Persian Gulf from reaching the Suez Canal and the SUMED Pipeline, diverting them around the southern tip of Africa, EIA said on its website.
Q: What is the likelihood of a closure at Bab el-Mandeb Strait?
Analysts doubt that Iranian-backed Houthi militants have the modern weaponry needed to close the strait or cause any serious disruption to shipping in the area. The Houthis have said they would keep the strait open to oil traffic.
Q: How much oil Yemen is currently producing?
Q: Are oil companies pulling out of Yemen?
Q: Are oil prices likely to continue rising on Yemen?
(Excerpt) Read more at blogs.wsj.com ...
Moreover, it is not the actual ability to close these straits but the potential which affects the perception and the availability of oil.
Whatever military and naval deficiencies limit the power of crazed Muslims at the neck of these straits, that equation changes tomorrow when their master puppeteer, Iran, gets the bomb the ability to control the straits will be absolute, or virtually absolute. Then the perception become the reality and God help us all.
The whole of the balance of power in the area will be stood on its head. The economy of the world can be stood on its head. To counteract this we have the magnificent American Navy but it is of no use when you have this commander in chief.
“Energy routes”. So make new ones and forget about these crapholes.
LOL, yeah, it is so easy to dig a new red sea and Suez Canal. Where would you dig it?
Right, just construct new pipelines and ports. Then ship it around the Cape of Good Hope instead of through Suez. Genius.
Actually I was thinking of getting the damn energy itself from other sources. The hell with the old routes and sources. But, yeah, since I guess we’re OBVIOUSLY at that peak oil we’ve been promised for so many decades let’s just wring our hands at the impossibility of it all.
The article is talking about the world market, not the US.
The Red Sea is not that important for the US but key for Europe.
Obviating the middle east oil fields would necessarily raise our price paid. Since it would seem to represent a break with the world market as a proper market I wonder what WOULD happen with world price...
“Analysts doubt that Iranian-backed Houthi militants have the modern weaponry needed to close the strait or cause any serious disruption to shipping in the area.”...........
They may not have the weaponry TODAY but remember that odumbo has a pen and a phone. He has supported “rebels” before and will more than likely do it again if it benefits him in anyway.
I don't understand your comment.
Make them irrelevant.
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