★$tévèñ™

BREAKING: Saudi Aramco, the world’s largest oil company, is cutting production at two oilfields. Reuters confirmed the cuts on 9 March. The fields are undisclosed. The volumes are undisclosed. Aramco has not commented. The silence is the signal. Here is why the world’s most valuable energy company is voluntarily reducing output during the largest oil price spike since 1983. Saudi Arabia produces approximately 10 million barrels per day. It exports roughly 7 million. Approximately 80% of those exports normally transit the Strait of Hormuz through the Ras Tanura terminal on the Persian Gulf coast. Ras Tanura, which processes 550,000 barrels per day, was struck by an Iranian drone on 2 March and shut down. The Strait itself is commercially closed, with transits down 80% since seven P&I clubs cancelled war-risk coverage on 5 March. Aramco’s contingency is the East-West Pipeline, a 1,200-kilometre conduit running from the Eastern Province to Yanbu on the Red Sea coast. In the first five days of March, Yanbu loaded 1.9 million barrels per day, a 60% surge above normal. But the pipeline’s maximum capacity is approximately 2.5 million barrels per day. Against 7 million barrels of daily exports, Yanbu can handle roughly a third. The rest has nowhere to go. Saudi onshore crude storage held approximately 82 million barrels as of early March, at roughly 56% capacity. At a production rate of 10 million barrels per day with exports constrained to 2.5 million via Yanbu, storage fills at approximately 7.5 million barrels per day. Full capacity is reached in under ten days. After that, production must be shut in because the crude has physically nowhere to go. Wells do not have a pause button. Shutting them in risks reservoir damage, pressure loss, and multi-month restart timelines. Aramco is not cutting because demand fell. It is cutting because the insurance market closed the Strait and the pipeline bypass cannot absorb the volume. The production cuts are the physical consequence of an actuarial decision made by seven P&I clubs in London ten days ago. Some reports suggest the two affected fields have a combined capacity of approximately 1.5 million barrels per day. If accurate, this represents a 15% reduction in Saudi output during a global supply crisis where every barrel commands a premium. The cuts tighten an already strained market: Iraq has collapsed 70% to 1.3 million barrels per day. QatarEnergy is under force majeure. Bapco in Bahrain declared force majeure today. Kuwait enacted precautionary cuts. The Houthi threat adds a second layer of risk. If Bab al-Mandab is closed or Yanbu is struck, the Red Sea bypass that Aramco is using to avoid Hormuz disappears. At that point, Saudi Arabia has no viable export route for any of its production. The world’s largest oil exporter becomes a landlocked producer. The market saw WTI touch $119 today before reversing to $103 on G7 reserve talk. The reserve talk covers days of consumption. The Aramco cuts cover the structural reality: the world’s largest exporter is being forced offline by the same insurance mechanism that closed the Strait, and the bypass pipeline that was supposed to provide resilience is already running at capacity. Hormuz closed by insurance. Ras Tanura closed by drones. Exports capped by pipeline capacity. Storage filling in days. And now production itself being cut at the source. The cascade has reached the wellhead. Full analysis here!! https://t.co/eMrt5qYYst

shanaka86's tweet photo. BREAKING: Saudi Aramco, the world’s largest oil company, is cutting production at two oilfields. Reuters confirmed the cuts on 9 March. The fields are undisclosed. The volumes are undisclosed. Aramco has not commented. The silence is the signal.

Here is why the world’s most valuable energy company is voluntarily reducing output during the largest oil price spike since 1983.

Saudi Arabia produces approximately 10 million barrels per day. It exports roughly 7 million. Approximately 80% of those exports normally transit the Strait of Hormuz through the Ras Tanura terminal on the Persian Gulf coast. Ras Tanura, which processes 550,000 barrels per day, was struck by an Iranian drone on 2 March and shut down. The Strait itself is commercially closed, with transits down 80% since seven P&I clubs cancelled war-risk coverage on 5 March.

Aramco’s contingency is the East-West Pipeline, a 1,200-kilometre conduit running from the Eastern Province to Yanbu on the Red Sea coast. In the first five days of March, Yanbu loaded 1.9 million barrels per day, a 60% surge above normal. But the pipeline’s maximum capacity is approximately 2.5 million barrels per day. Against 7 million barrels of daily exports, Yanbu can handle roughly a third. The rest has nowhere to go.

Saudi onshore crude storage held approximately 82 million barrels as of early March, at roughly 56% capacity. At a production rate of 10 million barrels per day with exports constrained to 2.5 million via Yanbu, storage fills at approximately 7.5 million barrels per day. Full capacity is reached in under ten days. After that, production must be shut in because the crude has physically nowhere to go. Wells do not have a pause button. Shutting them in risks reservoir damage, pressure loss, and multi-month restart timelines.

Aramco is not cutting because demand fell. It is cutting because the insurance market closed the Strait and the pipeline bypass cannot absorb the volume. The production cuts are the physical consequence of an actuarial decision made by seven P&I clubs in London ten days ago.

Some reports suggest the two affected fields have a combined capacity of approximately 1.5 million barrels per day. If accurate, this represents a 15% reduction in Saudi output during a global supply crisis where every barrel commands a premium. The cuts tighten an already strained market: Iraq has collapsed 70% to 1.3 million barrels per day. QatarEnergy is under force majeure. Bapco in Bahrain declared force majeure today. Kuwait enacted precautionary cuts.

The Houthi threat adds a second layer of risk. If Bab al-Mandab is closed or Yanbu is struck, the Red Sea bypass that Aramco is using to avoid Hormuz disappears. At that point, Saudi Arabia has no viable export route for any of its production. The world’s largest oil exporter becomes a landlocked producer.

The market saw WTI touch $119 today before reversing to $103 on G7 reserve talk. The reserve talk covers days of consumption. The Aramco cuts cover the structural reality: the world’s largest exporter is being forced offline by the same insurance mechanism that closed the Strait, and the bypass pipeline that was supposed to provide resilience is already running at capacity.

Hormuz closed by insurance. Ras Tanura closed by drones. Exports capped by pipeline capacity. Storage filling in days. And now production itself being cut at the source.

The cascade has reached the wellhead.

Full analysis here!!
https://t.co/eMrt5qYYst

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★$tévèñ™ @probedoctor

6 months ago

@ittihad_en Go Go Goal 🔊

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★$tévèñ™ @probedoctor

6 months ago

@GratiaDonum @kilundeezy She's got fluent foreign language more than the point she drive in Lastly the 💃 were grinded upon each n every wish n nothing can reverse that