Oil & Energy Investor by Dr. Kent Moors

Tanker Attacks and Oil Prices

by | published June 21st, 2019

The latest tanker attacks in the highly strategic Strait of Hormuz has escalated tensions between the U.S. and Iran.

And after a U.S. drone was shot down by the Iranians in the same area, things are getting even stickier.

Dr. Kent Moors was invited to discuss the matter on CNBC, as well as how the oil market will respond to this situation.

Watch the video to view Kent’s full appearance

What I Didn’t Tell CNBC Yesterday

by | published June 21st, 2019

In yesterday’s early hours (U.S. time), Iran used a surface-to-air missile to shoot down an American drone.

Not just any drone, mind you, this one:

Source: www.wired.com

This is an RQ-4A Global Hawk unmanned surveillance aircraft. For those of you who follow such matters, it costs a least $110 million.

The Global Hawk has been the workhorse of the U.S. reconnaissance fleet since its introduction in 2001, logging more than 250,000 flight hours over Iraq, Afghanistan, North Africa, and the Asian/Pacific region.

U.S. command in Qatar says it was in international waters. Teheran says it was in Iranian airspace. The precise demarcation in the waters abutting the strategic (and very narrow) Strait of Hormuz has always been a matter of dispute.

The Strait is the essential waterway connecting the Persian Gulf to the north with the Gulf of Oman and the broader Arabian sea to the south. About a third of all global daily waterborne oil traffic moves through Hormuz.

Source: Al Arabiya

At its apex, the Strait is barely two miles wide. However, the navigable portion of that opening pictured above is considerably narrower.

Meanwhile, both sides acknowledge the drone was launched from the United Arab Emirates (UAE).

One thing, however, is patently clear:

The shootdown has decisively worsened the dynamics in what has been an already unraveling situation in the Persian Gulf.