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Saudi-led forces and Yemen-based Houthi rebels announced that oil and gas exports will resume in an effort to restore revenues to the troubled country, Reuters reported on Wednesday.
The U.S. is expected to pass tonight a resolution that calls for a halt to U.S. military support in Yemen in a strongarm move to end the proxy war in Yemen between Iran and Saudi Arabia. This news comes as a likely blow to the Saudi-led forces, who have until now enjoyed the support of the United States.
If the Senate vote passes, the resolution still must gain unlikely House support by the end of the year. On top of that, President Donald Trump would need to sign the bill.
The UN pushed for what is now an uneasy truce between the warring factions that have seen oil flows disrupted for years. The talks have been ongoing for days, and began with a prisoner exchange that both sides agreed to.
Just two days ago, tensions escalated as The Houthis accused the Saudi-led coalition of blocking oil shipments from Yemeni ports.
The crisis in Yemen has long plagued the important oil chokepoint of Bab el Mandeb Strait—the world’s fourth largest chokepoint—and the world has watched for years as Iran/Saudi Arabia’s war mongering threatens a vital oil shipping route—a threat that the U.S. military has taken seriously.
Yemen’s oil industry essentially collapsed at the onset of the war in 2015, although one oil shipment resumed earlier this year as OMV re-opened its wells at Shabwa after a three-year hiatus. Yemen’s production was roughly 140,000 bpd before the war began.
The peace talks are said to be ongoing until Thursday, but so far the partial truce as seen as a big win.
By Julianne Geiger for Oilprice.com
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Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.