War? -- June 13, 2019

Hormuz horror: tanker torpedo attack. One of the tankers is flagged indirectly to the United States. Iran says the tanker has sunk, though other sources deny it. The other tanker was Panama-flagged. The US-tied tanker was chartered by Taiwan and was sailing from UAE.

Tracked at "Mideast on the brink."

Oh, give me a break! Does anyone really think Iran thinks these things out?

From twitter:

• US DOD: Iran "highly likely" to be behind oil tanker attacker. "Ya think?"
• strangely, tankers carrier Iranian crude oil seem immune to attacks
• the Hyundai vessel was sailing on to the UAE. Why it decided to transfer them (the sailors) to Iran is not clear at this time.
• 23 crew members on one ship; 21 on the other; the 23 were originally being moved by Hyundai Dubai 
• massive damage to starboard side of one tanker; very likely will be scuttled
• Oman security forces are near the vessels; can't yet confirm if the Front Altair is sinking (the insurance company is watching closely); vessel on fire; resources available to put the fire out? 
• Front Altair: naphtha on tanker originated from Abu Dhabi's ADNOC (and Katie McQue spelled it as "naptha")
• Kokuka: methanol on tanker originated from Saudi's Sabic and Qatar
• occurs during Japanese PM's visit: timing? awkward.
• the market just doesn't respond to supply threats like it once did.
• an alleged Iranian-supplied missile hits a civilian airport in Saudi Arabia
• two tankers torpedoed in the Strait of Hormuz
• price of oil: maybe it will go up a dollar a bbl

Hyperbole over at oilprice?

WTI, following the reports of the torpedoed tankers: up 2.76%; up $1.41; trading at $52.55. And folks are still debating whether the US is the "swing producer."

Swing producer: it's not the number of rigs, it's the number of DUCs.