Oil prices soar after drone attack on Saudi facility


FEDERAL RESERVE THIS WEEK. JOIN ME RIGHT NOW IS U.S. STRATEGIC ADVISOR BRETT, AND FROM PRICE FUTURES GROUP PHIL FLYNN, AND LET ME KICK IT OFF WITH UH-UH YOU GIVE US A SENSE OF THE OIL MARKET THIS MORNING WE’VE SEEN PRICES UP ALMOST 9% RIGHT NOW.>>YEAH A LOT OF TRADERS WERE IN SHOCK THIS WEEKEND YOU KNOW THERE WAS HAD ASSUMPTION, OF COURSE, THAT THIS TOO OF THING WOULDN’T HAPPEN WE WERE IN A NEW ERA AND WE REALLY DIDN’T HAVE TO WORRY ABOUT ABOUT OIL PRICE SHOCKS ANYMORE. AND I GO TO YOUR POINT YOU’RE ABSOLUTELY RIGHT THE UNITED STATES BEING THE BIGGEST PRODUCER IN THE WORLD IS REALLY SOFTEN THE BLOW E. BUT IT HAPPENED TOTAL REMOVE THE RISK. AND THE BIGST CONCERN I THINK FOR OIL MARKET RIGHT NOW IS NOT ONLY HOW QUICKLY THE SAUDIS CAN GET PRODUCTION BACK ONLINE BUT HOW CAN THEY STOP AN ATTACK IN THE FUTURE? THAT’S THE KEY THING HERE. LISTEN, WE HAVE KNOWN THAT THE REBELS HAVE BEEN ATTACKING FOR SOME TIME HOW DID THIS HAPPEN? AND CAN IT HAPPEN AGAIN?>>BRETT WHAT DO YOU SAY TO THIS CAN IT HAPPEN AGAIN AND ALSO THE FACT THAT IRANIANS ARE PUSHING TO SAY THIS WAS NOT THEN AND WHO IS TAKING RESPONSIBLE NO COMMENT ON THE FACT THAT IRAN ENCOURAGES THE REBELS.>>WELL, THERE’S NO DOUBT IN MY MIND THAT IS THE IRANIANS THEY HAVE EVERYTHING TO GAIN FROM THE SPIKE IN OIL PRICES THEY NEED OIL L OVER 100 DOLLARSES BARREL TO FUEL THEIR ECONOMY SO IT IS CLEARLY — YOU KNOW, THE IRANIANS IN THIS CASE. BUT THE ATTACKS WHICH YOU LOOK AT THIS REALLY CLOSELY, IT IS ONE OF THE DEEPEST ATTACKS WITHIN SAUDI TERRITORY FROM — WITH THIS TYPE OF DRONE STRICK AND BECAUSE OF THE CONFLICT WITHIN YEMEN AND SAUDI ARABIA YOU IMMEDIATELY POINT TO THEM AND ASSUME THAT THE DRONES ORIGINATED FROM INSIDE YEMEN. BUT AS DRONE EXPERT I LOOK AT THIS I STAY HOW IS THIS EVEN POSSIBLE? VEALED HAVE REACHED A DISTANCE OF ALMOST 800 KILOMETER TO OIL FIELD WHERE THEY HAVE THEIR PRIME TERRITORY AND THAT TAKES SIGNIFICANT LEVEL OF SOPHISTICATION TO DO THAT AND WE CAN DID THAT WITH SATELLITES AND RAY LAY SYSTEM AND PHYSICAL RELAYS IN DIFFERENT COUNTRIES THAT ALLOW US TO PUMP OUT THESE LIVE STREAM VIDEOS TO DO THAT FOR A REBEL GROUP IT TAKES INCREDIBLE LEVEL OF SOPHISTICATION THAT’S WHY I BELIEVE THESE ATTACKS IN ORIGINATING IN LIKELY IN IRAQ, AND WE PROBABLY HAVE VERY STRONG EVIDENCE INDICATING THAT THE IRANIANS MAY HAVE EVEN BEEN ONES TO PLY IT.>>WOW. ALL WEEKENDS I LOOKING AT RESEARCH REPORT FROM WALL STREET ANALYSTS THERE’S A LOT OF ACTIVITY OVER THE WEEKEND AS ANALYSTS WERE WRITING UP WHAT THEY THOUGHT THE IMPACT COULD BE BEFORE MONDAY MORNING OPENING FOR THE MARKETS. PRESIDENT TRUMP TWEETED ON THE ATTACKS AS WELL AND HE WROTE THIS. YESTERDAY — SAUDI ARABIA OIL SUPPLY WAS ATTACK AD THERE’S REASON TO BELIEVE THAT WE KNOW CULPRIT OUR LOCK AND LOADED DPEPGDING ON VERIFICATION BUT WAITING TO HEAR FROM KINGDOM HAS TO WHO THEY BELIEVE WAS THE CAUSE OF THIS ATTACK AND UNDER WHAT TERM WE WOULD PROCEED. BRETT, WHAT — SHOULD THE U.S. DO AT THIS POUPT ARE YOU EXPECTING A REACTION FROM THE U.S. A MILITARY REACTION?>>I THINK THAT THERE’S A POSSIBLE THAT THERE COULD BE SOME SORT OF MILITARY ACTION TO TAKE PLACE IF YOU LOOK AT IN LAST FEW WEEK WE SAW A STRIKE BY THE ISRAELIS ON IRANIAN BASED INSIDE IRAQ THAT WAS PREPARING TO SENDING DRONESES TO STRIKE SOME SORT OF ISRAELI ACCESS AND THEY STOP THAT BEFORE HAND. I THINK THAT WHAT WE’RE SEEING MANY THIS CASE IS THAT WE HAVE CLEAR EVIDENCE THERE’S RAN I CAN BASE FROM WHERE DRONES ORIGINATED BUT I WANT TO TALK QUICKLY HOW TO STOP ATTACKS IN THE FUTURE BUT WE HAVE ABILITY RIGHT NOW THE TECHNOLOGY EXIST TO BE ABLE TO HIJACK THE CONTROLS OF A DRONE TAKE OVER A DRONE REMOTELY AND LAND IT FAITHFULLY THIS WAS NOT — THIS WAS SOPHISTICATED TECHNOLOGY NOT CLASSIFIED TOP SECRET TECH WE’RE TALKING ABOUT. THESE OIL FACILITIES SHOULD BE INSTALLING THIS COUNTERDRONE TECHNOLOGY THAT IS ABLE TO STOP THESE ATTACKS CREATE THESE VIRTUAL BARRIERS THAT CAN JAM THE SIGNALS OF THE DRONES SO THAT THESE CRITICAL FACILITIES DON’T HAVE TO DEAL WITH THIS PROBLEM IN THE FUTURE. SMG AIMING TO RESTORE A THIRD OF LOST OIL OUTPUT TODAY. THAT’S ACCORDING TO “THE WALL STREET JOURNAL,” I WANT TO I WANT OUT LINDSAY GRANDMA’S TWEET YESTERDAY BEFORE YOU ANSWER, ON SAUDI TRYING TO — TRYING TO FILL UP WHAT HAS BEEN LOST, LINDSEY GRAHAM TWEETED THIS. IT IS NOW TIME FOR THE U.S. TO PUT ON THE TABLE AND ATTACK ON IRANIAN OIL REFINERIES THEY CONTINUE THEIR PROVOCATIONS OR INCREASE NEW CLEAR ENRICHMENT.>>I THINK THAT’S A POSSIBILITY. IT’S SENDING IRANIAN A QUICK MESSAGE, IT WILL HAVE A MAJOR IMPACT ON THE GLOBAL ECONOMY AND OIL PRICES IF THAT HAPPENS. BECAUSE WE “DON’T ASK, DON’T DON BECAUSE WE “DON’T ASK, DON’T DOT BECAUSE WE “DON’T ASK, DON’T DOK BECAUSE WE “DON’T ASK, DON’T DOO BECAUSE WE “DON’T ASK, DON’T DOW BECAUSE WE “DON’T ASK, DON’T DOA BECAUSE WE “DON’T ASK, DON’T DOT BECAUSE WE “DON’T ASK, DON’T DOW BECAUSE WE “DON’T ASK, DON’T DOL HAPPEN AFTER THAT BUT A HIGH RISK SITUATION. I WILL SAY THIS PRESIDENT TRUMP IS VERY GOOD AT TRYING TO CALM OIL PRICES. RIGHT AS MARKET WAS OPENING IN THE HE CAME OUT WITH A TWEET TO RELEASE OIL FROM A RESERVE AND E REMINDING PEOPLE THERE’S PLENTY OF OIL OUT THERE SO DON’T WORRY.>>THAT’S WHAT HE SAID IN THE TWEET DAGEN PLENTY OF OIL EXPLAY NATION POINT.>>THERE’S A CONCERN ABOUT BEING A TOIBL RAMP UP PRODUCTION PARTICULARLY HERE IN THE U.S. IN THE BASIN AND SHALE FORMATIONS THAT I KNOW THAT THEY I THINK THE U.S. RIG COUNT IS DOWN TO A 17-MONTH LOW DOWN 16.FROM A YEAR AGO. ACCORDING TO BAGGER HUGHES AND IT IS NOT THAT EASY TO RAMP UP THAT PRODUCTION HERE IN THE U.S. THEY HAVE LAID OFF EMPLOYEE AND TAKE WEEKS TO PUT THIS BACK ONLINE THEY HAVE A LOT OF DRILL BUT UNCOMPLETED WEALTH THAT THEY CAN TRY TO BRING ON QUICKLY BUT THEN YOU HAVE ISSUES OF TRANSPORTATION, TRYING TO GET IN ONLINE AND WE’RE ALREADY PEX PORTING A RECORD ALL OF OIL SO IT IS HARD TO INCREASE THAT.>>ALL RIGHT GREAT CONVERSATION GUYS WE’RE WAVING MOVE THAT IS —

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