Saudi Arabia begins air campaign in Yemen

March 26, 2015

Washington, Mar 26: Saudi Arabia announced Wednesday night that it had begun military operations in Yemen, launching airstrikes in coordination with a coalition of 10 nations.

sauThe strikes came as Yemen was hurtling closer to civil war after months of turmoil, as fighters and army units allied with the Houthi movement threatened to overrun the southern port of Aden, where the besieged president, Abed Rabbo Mansour Hadi, had gone into hiding.

Yemen shares a long border with Saudi Arabia, a major U.S. ally, and the Saudis had been reported to be massing forces on the Yemen frontier as Hadi's last redoubt in Aden looked increasingly imperiled.

The rapid advances by the president's opponents included the seizure of a military air base and an aerial assault on his home. There were unconfirmed reports that the president had fled the country by boat for Djibouti, the tiny Horn of Africa nation across the Gulf of Aden.

The region's most impoverished country, Yemen has been a central theater of the U.S. fight against al-Qaida, and its possible collapse presents complex challenges for the Obama administration as it struggles to deal with instability and radical extremism in the Middle East.

Along with Syria, Iraq and Libya, Yemen is the fourth state to veer toward political disintegration in the aftermath of the Arab Spring revolts that first erupted four years ago.

By Wednesday morning, Houthi forces had seized Al Anad air base, which until recently had been used by U.S. counterterrorism forces, about 35 miles from Hadi's refuge in Aden, the country's second-largest city.

A television network under Houthi control said they had found the base empty and looted, and had captured two senior officers loyal to Hadi, including his defense minister.

A few hours later, Yemeni air force planes under Houthi control struck targets near the president's Aden home and his supporters returned fire with anti-aircraft guns.

The state television network, also controlled by Houthis, announced a $100,000 bounty for Hadi's arrest as rumors about his whereabouts swirled. By nightfall, there were reports that Houthi forces were fighting around the Aden airport, on the outskirts of the city.

A security official of Hadi's government confirmed the loss of Al Anad. Hadi's foreign minister, meanwhile, reiterated his calls for intervention by Saudi Arabia, Egypt and other Arab states to stop the Houthis, stoking fears that their advance could trigger a widening regional conflict.

The country appeared to be sliding toward a civil war as dangerous as any in the region, with elements of a sectarian feud, a regional proxy conflict, the attempted return of an ousted authoritarian and the expansion of anti-Western extremist groups like al-Qaida and the Islamic State eager to capitalize on the chaos.

The Houthis, a minority religious group from northern Yemen, practice a variant of Shiite Islam and receive support from Iran.

But they are also collaborating with Yemeni security forces still loyal to former President Ali Abdullah Saleh, the longtime strongman who was pushed from power amid the Arab Spring uprising but now appears to be orchestrating a comeback in alliance with the Houthis.

With Saleh's help, the Houthis now control most of the Yemeni military, including its air force. That has given them a decisive advantage over Hadi's forces, as their seizure of the Al Anad base Wednesday made clear.

But their ability to control and govern their expanding territory remains far from clear, as does the potential pushback from Saudi Arabia and other regional powers.

"I would not be surprised if we see Aden falling to the Houthis tomorrow," said Ibrahim Sharqieh, deputy director of the Brookings Doha Center. "But that will just set the stage for a prolonged conflict or civil war, because the Houthis have not been able to maintain order even in the areas they have controlled since last year."

Hadi, the president, was installed as a replacement for Saleh in a transition brokered by Persian Gulf monarchies, and he has the backing of both Saudi Arabia and Washington. But he fled to Aden from the capital, Sanaa, after the Houthis captured it months ago.

He now appears to have retained the support and protection of only a small number of military units and some tribal groups based in the predominantly Sunni Muslim south.

As Hadi's opponents have cornered him, his supporters have escalated calls for Saudi Arabia, the other Persian Gulf states and Egypt to intervene to hold back the Houthis, portraying them as an arm of Iran.

At a news conference this week, Prince Saud Al-Faisal, the Saudi foreign minister, hinted at a possible intervention, saying Saudi Arabia "will take the necessary measures for this crisis to protect the region."

At the Arab League, officials said Wednesday that Yemen would top the agenda at a meeting this week of the Arab foreign ministers in Sharm el-Sheikh, Egypt.

But a spokesman for the Egyptian Foreign Ministry quickly dispelled rumors that Cairo had already agreed to intervention. "We have no idea at all about that," said the spokesman, Ambassador Badr Abdellatty.

Against the backdrop of the escalating conflict, Sunni Muslim extremists pledging allegiance to both al-Qaida and the Islamic State have been escalating their attacks, including sectarian assaults on the Houthis.

The Islamic State claimed responsibility for two bombings of Shiite mosques in Sanaa on Friday that killed more than 135 people. Al-Qaida's affiliate, al-Qaida in the Arabian Peninsula, already effectively controls pockets of southern Yemen beyond the reach of either Hadi or the Houthis.

The United States evacuated its military personnel from Al Anad several days ago, as fighters from al-Qaida's Yemeni affiliate moved closer from one side and Houthi fighters pushed closer from the other.

About 100 U.S. personnel, including Special Forces commandos, were reportedly stationed there before the evacuation.

Houthi leaders have said their drive to the south is a battle to root out the Islamic State and al-Qaida, portraying both groups as instruments of a broad international conspiracy including Israel, Saudi Arabia and the United States.

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News Network
March 6,2020

Riyadh, Mar 6: Saudi Arabia on Thursday emptied Islam's holiest site for sterilisation over fears of the new coronavirus, an unprecedented shutdown state media said will last while the year-round Umrah pilgrimage is suspended.

The kingdom halted the pilgrimage for its own citizens and residents on Wednesday, on top of restrictions announced last week on foreign pilgrims to stop the disease from spreading.

State television relayed images of an empty white-tiled area surrounding the Kaaba -- a large black cube structure inside Mecca's Grand Mosque -- which is usually packed with tens of thousands of pilgrims.

As a "precautionary measure", the area will remain closed as long as the umrah suspension lasts but prayers will be allowed inside the mosque, state-run Saudi Press Agency cited a mosque official as saying.

Additionally, the Grand Mosque and the Prophet's Mosque in the city of Medina will be closed an hour after the evening "Isha" prayer and will reopen an hour before the dawn "Fajr" prayer to allow cleaning and sterilisation, the official added.

A group of cleaners was seen scrubbing and mopping the tiles around the Kaaba, a structure draped in gold-embroidered gold cloth towards which Muslims around the world pray.

A Saudi official told news agency the decision to close the area was "unprecedented".

On Wednesday, Saudi Arabia suspended the umrah for its own citizens and residents over fears of the coronavirus spreading to Islam's holiest cities.

The move came after authorities last week suspended visas for the umrah and barred citizens from the six-nation Gulf Cooperation Council from entering Mecca and Medina.

Saudi Arabia on Thursday declared three new coronavirus cases, bringing the total number of reported infections to five.

The umrah, which refers to the Islamic pilgrimage to Mecca that can be undertaken at any time of year, attracts millions of Muslims from across the globe annually.

The decision to suspend the umrah mirrors a precautionary approach across the Gulf to cancel mass gatherings from concerts to sporting events.

It comes ahead of the holy fasting month of Ramadan starting in late April, which is a favoured period for pilgrimage.

It is unclear how the coronavirus will affect the hajj, due to start in late July.

Some 2.5 million faithful travelled to Saudi Arabia from across the world in 2019 to take part in the hajj, which is one of the five pillars of Islam as Muslim obligations are known.

The event is a massive logistical challenge for Saudi authorities, with colossal crowds cramming into relatively small holy sites, making attendees vulnerable to contagion.

Already reeling from slumping oil prices, the kingdom risks losing billions of dollars annually from religious tourism as it tightens access to the sites.

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News Network
May 7,2020

Dubai, May 7: Saudi Arabia will emerge as the victor of the oil price war that sent global crude markets into a spin last month, according to two experts in the energy industry.

Jason Bordoff, professor and founding director of the Center for Global Energy policy at New York’s Columbia University, said: “While 2020 will be remembered as a year of carnage for oil nations, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.”

Writing in the American publication Foreign Policy, Bordoff said that the Kingdom’s finances can weather the storm from lower oil prices as a result of the drastically reduced demand for oil in economies under pandemic lockdowns, and that it will end up with higher oil revenues and a bigger share of the global market once it stabilizes.

Bordoff’s view was reinforced by Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and one of the longest-standing directors of Saudi Aramco. In an interview with the Gulf Intelligence energy consultancy, he said that low-cost oil producers such as Saudi Arabia would emerge from the pandemic with increased market share.

“Oil is the only commodity where the lowest-cost producers have contained their production and allowed high-cost producers to benefit. When demand recovers this year or next, we will emerge from it with the lowest-cost producers having increased their market share,” Moody-Stuart said.

Bordfoff said that it would take years for the high-cost American shale industry to recover to pre-pandemic levels of output. “Depending on how long oil demand remains depressed, US oil production is projected to decline from its pre-coronavirus peak of around 13 million barrels per day.

“Shale's heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets. Many US companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One quarter of US shale oil production may have been uneconomic even before prices crashed,” he said.

Moody-Stuart said that recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were “an important step to wean the population of the Kingdom off an entitlement feeling. It means that everybody is joining in it.”

The former Shell boss said that other big oil companies would follow Shell’s recent decision to cut its dividend for the first time in more than 70 years. But he added that Aramco would stick by its commitment to pay $75 billion of dividends this year.

“When a company looks at its forecasts it looks ahead for one year, so for this year it (the dividend) is fine,” he said.

Bordoff added that Saudi Arabia’s action in cutting oil production in response to the pandemic would improve its global position.

“Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, the Kingdom’s willingness to oblige by cutting production will reverse some of the damage done when it was blamed for the oil crash after it surged production in March,” he said.

“Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the Kingdom in anything other than a strengthened position,” Bordoff said.

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News Network
March 11,2020

Riyadh, Mar 11: Energy titan Saudi Aramco said Tuesday it will boost crude oil supplies to 12.3 million barrels per day in April, flooding markets as it escalates a price war with Russia.

Riyadh had already slashed its price for April delivery after Russia refused its proposal that producer alliance OPEC+ orchestrate a co-ordinated cut of 1.5 million barrels per day.

The production cut had been mooted to shore up global oil prices, which have gone into meltdown as the deadly new coronavirus casts a pall over the world economy, but now price cuts and rising output indicate an unravelling of OPEC+ co-operation.

"Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day of crude oil in April," the company said in a statement to the Saudi stock exchange.

Saudi Arabia, the world's biggest crude exporter has been pumping some 9.8 million bpd so its announcement on Tuesday means it will be adding at least 2.5 million bpd from April.

"The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect," the statement said.

Saudi Arabia says it has an output capacity of 12 million bpd but it is not known for how long it can sustain such levels.

The kingdom also has millions of barrels of crude stored in strategic reserves to be used when needed and is expected to use it to provide the extra supply to the global market.

"Production above 12 million bpd shows the Saudis have something to prove," director of Britain-based RS Energy Bill Farren-Price said.

"This is a grab for market share. The taps are open and the prices have been cut sharply," Farren-Price told AFP.

In a quick response, Russian Energy Minister Alexander Novak said Moscow could boost production in the short term "by 200,00-300,000 bpd, with a potential of 500,000 bpd in the near future".

But he stressed that Moscow was in favour of extending a December agreement that had seen OPEC and Russia agree to cut production by 500,000 barrels per day in 2020, lowering output from October 2018 levels by 1.7 million barrels per day.

The events of recent days have signalled a disintegration of collaboration between OPEC and Russia.

Russia is a non-OPEC member and the world's second-biggest oil producer, but Moscow and other non-members have in recent years co-operated with the oil cartel in an arrangement known as OPEC+.

The Saudi price cuts over the weekend, which were the first salvo in the price war, sent oil prices crashing -- registering the single biggest one-day loss in three decades on Monday.

Saudi Arabia draws around 70 per cent of its revenues from oil, and the revenues are key to ambitious reform programmes launched by Crown Prince Mohammed bin Salman.

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