Category Archives: Saudi Arabia
by Bassam Tawil
February 13, 2015 at 5:00 am
Iran, with its proxies in Lebanon, Syria, Iraq, Bahrain and Yemen, has surrounded all the oil fields in the region and is currently busy encircling Jordan, Israel and Palestine.
Iran not only reaches now from Afghanistan to the Mediterranean, but Iranian Shi’ites have been spreading out through Africa and South America.
By the time U.S. President Barack Obama leaves office, Iran will not only have nuclear breakout capability, but also the intercontinental ballistic missiles to deliver its nuclear warheads to Europe and North America.
If Iran can finally drive the U.S. out of the Gulf by threatening U.S. assets, it will be free to pursue still further expansion.
If the deal signed with Iran is full of loopholes, it is Obama who will be blamed. Does Obama really want his legacy to be, “The President who was even a bigger fool than Neville Chamberlain”? He will not be seen as “Nixon in China.” He will be seen as the Eid al-Adha lamb.
Recently, foreign ministers from the European Union (EU) have been holding meetings with representatives of the Arab and Muslim world, including Turkey and Qatar, with the intention of forming a “joint task force to fight Islamist terrorism.”
Turkey and Qatar, for example, directly encourage Islamist terrorism, thus there is no way they can be part of a task force to act against it.
In some Islamic thinking, such nonsense, because of its certain lack of ever seeing the light, is merely a prologue to the ultimate war between Gog and Magog (“yagug wamagu”), and heralds the End of Days.
The Arab-Muslim world engages in perpetual internal strife. Iran, for instance, with its proxies in Lebanon, Syria, Iraq, Bahrain and Yemen, has surrounded all the oil fields in the region, and is currently busy encircling Jordan, Israel and the Palestinians. Iran not only reaches now from Afghanistan to the Mediterranean, but Iranian Shi’ites have been spreading out through Africa and South America. Another sign of the End of Days is the United States’ collaboration with Iran against the Islamic State in Iraq and Syria. It means the world will eventually pay for America’s looking the other way while the Iranians are building nuclear bombs in their cellars.
These cellars may currently be distant from the shores of the United States, but they are close to all the oil fields in the Middle East. By the time U.S. President Barack Obama leaves office, Iran will not only have nuclear breakout capability, but also intercontinental ballistic missiles to deliver its nuclear warheads. Its next target will be U.S. assets in the Gulf. If Iran can finally drive the U.S. “Great Satan” out of the Gulf by threatening U.S. assets, it will be free to pursue still further expansion.
These are or will be the victims of America’s determination to drag out the problem of an exploding Middle East. That way, U.S. President Barack Obama can hand the region over to the next president, while forever pretending that the vacuum created by pulling U.S. troops out of the Middle East — now being filled by Iran, the Islamic State and other terror groups — had nothing to do with him.
This situation leaves, ironically, the lone voice of Israeli Prime Minister Benjamin Netanyahu crying in the wilderness. As much as many of us may not like him or the people he represents, he is one of the two world leaders in the West telling the truth, warning of what is to come (Geert Wilders of the Netherlands is the other). This burden of responsibility for his people (how many of us wish our leaders had even a bit of that?) has earned him only the venom of the Obama Administration, who see him as trying to spoil their strategy of leading by procrastination.
It is also becoming increasingly clear that the Obama Administration’s policy consists of running after Iran, in order to concede everything it wants, just to be able wave a piece of paper not worth the ink on it, claiming there is “a deal.” Iran, for its part, would probably prefer not to sign anything, and most likely will not. Meanwhile, both sides continue strenuously to claim the opposite.
Western leaders just seem not to be programmed to understand the capabilities of other leaders, and how they, too, negotiate, manipulate and hide behind lies. Obama’s Russian “Reset Button” did not work; his “Al Qaeda is on the run,” did not work; “We shall never let Russia take the Ukraine” did not work; and the unwinnable Israel-Palestinian “Peace Process” did not work.
Obama, in order to wave a piece of paper not worth the ink on it, seems eager to fall victim to bogus promises, worthless treaties and other leaders’ outright lies — only to look an even bigger fool than Britain’s former Prime Minister, Neville Chamberlain. After meeting with Germany’s with Adolf Hitler in 1938, Chamberlain returned to Britain boasting of “peace in our time.” But Chamberlain did not have the luxury of seeing a Chamberlain duped before him. If the deal signed with Iran is full of loopholes, it is Obama who will be blamed. Does Obama really want his legacy to be, “The president who was an even bigger fool than Neville Chamberlain”? He will not be seen as “Nixon in China.” He will be seen as the Eid al-Adha lamb.
Bassam Tawil is a scholar based in the Middle East.
Saudi Arabia Declares Oil War on US Fracking, hits Railroads, Tank-Car Makers, Canada, Russia; Sinks Venezuela
by Wolf Richter • December 1, 2014
When OPEC announced on Thanksgiving Day that it would maintain oil production at 30 million barrels per day, chaos broke out in the oil market, and the price of oil around the globe spiraled into a terrific plunge. The unity of OPEC, if there ever was such a thing, was in tatters with Saudi oil minister smiling victoriously, and with a steaming Venezuelan oil minister thinking of the turmoil his country is facing [OPEC Refuses to Cut Production, Oil Plunges off the Chart].
The bloodletting in the oil markets on Thursday led to some wobbly stability on Friday, and for a while it seemed oil had found a bottom, but then the US stock market closed early while crude continued trading, and suddenly all heck re-broke loose, and the US benchmark WTI plunged again and broke the $66-a-barrel mark before coming to a rest at $66.06. After a near 10% dive in two days, WTI is now down 37% since June!
This chart shows the Thanksgiving plunge following OPEC’s decision, the deceptive stability Friday, and the afterhours plunge:
Now more information has emerged, confirming prior “rumors” and “conspiracy theories.”
During the closed-door meetings in Vienna, Saudi oil minister Ali al-Naimi told OPEC members that OPEC had to combat the US fracking boom. If OPEC cut output to raise the price of oil, it would lose market share, he argued. The way to win would be to allow overproduction to depress prices to the point where they would destroy the profitability of North American producers. And they’d have to cut production, rather than OPEC.
With Saudi Arabia’s overwhelming power within OPEC, his argument won against objections from desperate members, such as Venezuela, Iran, and Algeria, which wanted a production cut to push prices back up.
“Naimi spoke about market share rivalry with the United States, and those who wanted a cut understood that there was no option to achieve it because the Saudis want a market share battle,” a source told Reuters to make sure the message got out.
Asked if this was a response to rising US production, OPEC Secretary General Abdullah al-Badri essentially confirmed OPEC had entered the oil war against the American shale revolution: “We answered,” he said. “We keep the same production. There is an answer here.”
The bloodletting is spreading.
While the US fracking boom is the official target, Canada’s tar-sands producers are getting hit the hardest. The process is expensive. Their production is largely land-locked and often has to be transported to distant refiners in Canada and the US by costly oil trains. Yet these high-cost producers are getting the least for their oil: The heavy-oil benchmark Western Canada Select (WCS) traded for $48.40 per barrel on Friday, down over 40% from June, the cheapest oil in the world.
Their shares got knocked down in sync: For example, Suncor Energy dropped 9% on Friday, down 27% since June; and Canadian Natural Resources dropped nearly 10% for the day, down 28% since June.
The US shale oil revolution is bleeding as well. Shares across the board are getting hit, many of them outright eviscerated. If the word “plunge” occurs a lot, it’s because that’s what these stocks did on Friday.
- Goodrich Petroleum plunged 34% on Friday; down 80% from June.
- Sanchez Energy plunged 29.5% on Friday, down 71% from June.
- Clayton Williams Energy plunged 25.6% on Friday, down 61% from May.
- Callon Petroleum plunged 18.6% on Friday, down 60% from June.
- Laredo Petroleum plunged 33.5% on Friday, down 66.5% from June.
- Oasis Petroleum plunged 27.2% on Friday, down 68% from July.
- Stone Energy plunged 24.1% on Friday, down 68% from April.
- Triangle Petroleum plunged 25.6% on Friday, down 62% from June.
- EP Energy plunged 25.3% on Friday, down 54% from June.
The list goes on. Even large oil companies got clobbered:
- Exxon Mobil down 4.2% for the day and 13% from July.
- ConocoPhillips down 6.7% for the day and 24% from July.
- Marathon Oil down 11% for the day and 31% from early September.
- Occidental Petroleum down 7.4% for the day and 24% from June.
- Anadarko Petroleum down 10.5% for the day and 30% since late August.
Then there is the Oil Service sector.
The Market Vectors Oil Services ETF dropped 8.9% for the day and has plummeted 34% from June. The current standout is its 10th-most heavily weighted component, Norway-based SeaDrill which had announced that it would cut its dividend to zero to deal with its mountain of debt, given the current environment. Its shares swooned on Thursday and Friday a total of 28% and are now down 70% from a year ago. The whole sector followed. This is what debt can do when the going gets tough.
Those are among the official targets of OPEC’s scorched-earth oil war. They’ve been hit, and they’re taking on water.
There is collateral damage.
With increasing amounts of oil being carried by oil trains, the railroads, which had been trading near their exuberant 52-week highs in large part due to the lucrative oil-train business, suddenly took a dive on Friday:
- Union Pacific -4.9%
- CSX -3.8%
- Canadian Pacific -8.0%
- Norfolk Southern -4.7%
- Kansas City Southern -5.1%
- Canadian National Railway -4.6%
- Burlington Northern Santa Fe, which is owned by Warren Buffett’s Berkshire Hathaway, isn’t publicly traded. But if the oil-train business gets hit, so will Buffett’s “steal.”
But this pales compared to the carnage in tank-car builders. On Friday, they plunged:
- Greenbrier -15% for the day, -28% from its September high.
- American Railcar Industries -12.9% for the day, -28.3% since August.
- FreightCar America -7.5% for the day, -21% since September.
- Trinity Industries -11.3% for the day, -36% since September.
The oil price move is already cascading through American industry. Bondholders are next. The US fracking boom was built with debt, much of it junk rated. And this pile of debt is now at the confluence of the collapsing price of oil, high costs of production, and sharp decline rates of fracked wells that force drillers to continue drilling just to maintain their revenues. It’s a toxic mix.
And there are victims of friendly fire, so to speak.
Particularly OPEC member Venezuela, dogged by the world’s highest inflation and worst budget deficit, is running out of options. On November 18, President Nicolas Maduro ordered $4 billion in loan proceeds from China to be transferred from an off-budget fund to one counted in the international reserves. The sudden appearance of $4 billion in international reserves pumped up bondholder confidence: the next day in intraday trading, Venezuelan bonds jumped the most in six years.
But it didn’t last long. Within a week, its international reserves dropped by $1.3 billion to $22.2 billion, Bloomberg reported. Venezuela had burned through one third of the Chinese money in one week. Venezuela must have much higher oil prices. Unless a miracles happens, or unless China bails it out altogether – at a steep price – the country is headed for default.
Russia, third-largest oil producer in the world, after Saudi Arabia and the US, also got hit, as did Norway, and their currencies have been brutalized [Ruble Freefall: And the Ugliest Currencies Are?]
But this time it’s different.
This time, OPEC is trying to depress oil prices. In prior years, OPEC tried to push prices as high as possible, but without killing the global economy and demand for oil. The balancing act led to high oil prices that consumers struggled to pay but that allowed the US shale revolution to bloom. If oil had remained at $40 or $50 a barrel, fracking wouldn’t have taken off. OPEC was, ironically, one of the enablers of fracking (yield-desperate investors, driven to near insanity by the Fed’s zero-interest-rate policy, were the other one). And now fracking is threatening to make OPEC irrelevant.
Saudi Arabia, formerly the dominant oil producer in the world, the country whose mere words could shake up markets and manipulate US policies in the Middle East, and the master of an all-powerful OPEC, is reduced to struggling for simple market share, the hard way.
A lot of people believe that the plunge in the price of oil will be brief, and that it has gone pretty much as far as it can go, given production costs in the US and Canada. But the bloodletting in the US fracking revolution will go on until the money finally dries up. Read… How Low Can the Price of Oil Plunge?
11.11.2014 Author: Viktor Titov
Saudi Arabia has recently witnessed the aggression that should have happened sooner or later due to its short-sighted policy in Syria, Iraq and Iran. As an old saying goes: “If you dig a hole for others, you’re sure to fall in it yourself.”
A few days ago the Saudi town of Dalva, situated in the oil-rich Eastern Province, suffered an attack of a group of armed Sunni terrorists, which resulted in seven civilian deaths. Most of the attackers were citizens of the Kingdom. The promt response of the local security forces allowed the servicemen to detain 20 members of an underground terrorist group, consisting mainly of those who had previously fought under the black banner of ISIL in Iraq and Syria. Law enforcement agencies of Saudi Arabia have managed to capture the head of the armed group, his name is kept secret. The only information that has become available to journalists is that this commander has recently returned from Syria where he was fighting against the pro-Assad forces.
Riyadh is now facing a harsh dilemma: on the one hand, the House of Saud is actively oppressing its Shia citizens, on the pretext of their disloyalty and their alleged attempts to undermine the national security of the kingdom due to the “evil Iranian influence.” On the other – Sunni terrorists, that Saudi Arabia is fighting today alongside with its closest ally – the US, have assaulted Shia civilians on the Saudi soil, and those were virtually enjoying the same rights as the rest of the population, including the right for protection. It is now official: Saudi citizens motivated by religious hatred are commiting manslaughter of their fellow citizens.
The only question is how Riyadh may react when the Sunni terrorists that it had trained and funded will unleash a wave of terror against the Shia population of KSA? A similar course of events has already taken place in the neighboring Bahrain back in 2011, but Saudi regular troops were fast to cross the border in an attempt to prevent the violence from spreading.
It is no coincidence that the events in the city of Dalva are completely ignored by the international media. Should this fact become widely known then the Saudi authorities will be forced to recognize the threat ISIL poses to Saudi Arabia along with acknowledging the underlying instability of Saudi society that can endanger the ruling Wahhabi regime.
Now that the Shia population of the Eastern Province is buzzing with discontent, the House of Saud has found itself in a tight corner. Should the authorities fail to prosecute the terrorists a violent unrest of the Shia population, similar the one that shook Saudi Arabia in 2011 -2012, in the wake of the above mentioned events in Bahrain, will be quick to follow. But if the terrorists are to be punished to the fullest extent of the Sharia law, then the Wahhabis and Salafis will accuse the royal family of “betrayal” of the Sunnis. This course of events will end no better, with a massive wave of violent terror attacks, carried out by ISIL militants all across Saudi Arabia. Now that ISIL thugs have faced harsh resistance in Syria and Iraq, they will be eager to move south to start a “sacred struggle against the corrupt pro-American reign of Al Saud family“. As for the Iraqi Shia population, they can only welcome this U-turn in their ongoing struggle against Islamists. Moreover, it is possible that the indignation of the Saudi Shia population of the Eastern Province will find some form of support in Tehran and Baghdad. This means that the fate of the kingdom’s territorial integrity will be put to the test. The nightmares of the Saudi ruling family seems to be coming true — Saudi Arabia can be split into several parts, which had been joined together to create the kingdom back in 1929. This trend can be accelerated by the fact that a couple of weeks ago the Shia Houthis rebels seized power in Yemen, on the south-western borders of the KSA.
When Riyadh joined the US “anti-terrorist” coalition back in October, along with a number of NATO and GCC countries, political predicted the imminent revenge of ISIL.
So the events of November 4 may only be the first steps. On top of all, Saudi authorities have yielded to the US demands of dumping oil prices in an attempt to undermine Russia’s economy. This led to the narrowing scope of social initiatives being implemented in the Kingdom, since money became scarce in the royal treasury.
By agreeing to support the US global ambitions, the House of Saud has clearly shot itself in the foot. Especially now, when Washington has displayed its willingness to sign an agreement on Iran’s nuclear program in two weeks time. This step will force Saudi Arabia to kiss it oil monopoly goodbye along with the role of the main strategic partner of the US in the region. At this point Riyadh couldn’t care less about the US military adventures in Iraq and Syria, it going to try to save its skin
It is clear that the coming days will put the Al-Saud dynasty’s survival skills to the test. Should the KSA authorities fail to keep the situation in the Eastern Province under control — the Kingdom is doomed. With each passing day the Shiite arc becomes more apparent on the political horizon of the Middle East, just like the US miscalculations.
As soon as Washington is trying to project its influence in the region, the Arab regimes are beginning to crumble and fall apart. One can recall the revolutions in Egypt, Libya, Yemen, along with the civil wars in Syria and Iraq to illustrate this statement.
It is now safe to say that Obama has screwed everything up again by putting its strategic partner in danger. It seems that the defeat in the US midterm elections was a failure all right, yet he never stops to surprise his followers. And it is unlikely that the Republicans will be fascinated by the sight of Saudi Arabia going down in flames.
Viktor Titov, Ph.D in Historical Sciences and political commentator on the Middle East, exclusively for the online magazine New Eastern Outlook
by Aaron Klein
JERUSALEM – Members of the Islamic State of Iraq and the Levant, or ISIS, were trained in 2012 by U.S. instructors working at a secret base in Jordan, according to informed Jordanian officials.
The officials said dozens of ISIS members were trained at the time as part of covert aid to the insurgents targeting the regime of Syrian President Bashar al-Assad in Syria. The officials said the training was not meant to be used for any future campaign in Iraq.
The Jordanian officials said all ISIS members who received U.S. training to fight in Syria were first vetted for any links to extremist groups like al-Qaida.
In February 2012, WND was first to report the U.S., Turkey and Jordan were running a training base for the Syrian rebels in the Jordanian town of Safawi in the country’s northern desert region.
That report has since been corroborated by numerous other media accounts.
Last March, the German weekly Der Spiegel reported Americans were training Syrian rebels in Jordan.
Quoting what it said were training participants and organizers, Der Spiegel reported it was not clear whether the Americans worked for private firms or were with the U.S. Army, but the magazine said some organizers wore uniforms. The training in Jordan reportedly focused on use of anti-tank weaponry.
The German magazine reported some 200 men received the training over the previous three months amid U.S. plans to train a total of 1,200 members of the Free Syrian Army in two camps in the south and the east of Jordan.
Britain’s Guardian newspaper also reported last March that U.S. trainers were aiding Syrian rebels in Jordan along with British and French instructors.
Reuters reported a spokesman for the U.S. Defense Department declined immediate comment on the German magazine’s report. The French foreign ministry and Britain’s foreign and defense ministries also would not comment to Reuters.
The Jordanian officials spoke to WND amid concern the sectarian violence in Iraq will spill over into their own country as well as into Syria.
ISIS previously posted a video on YouTube threatening to move on Jordan and “slaughter” King Abdullah, whom they view as an enemy of Islam.
WND reported last week that, according to Jordanian and Syrian regime sources, Saudi Arabia has been arming the ISIS and that the Saudis are a driving force in supporting the al-Qaida-linked group.
WND further reported that, according to a Shiite source in contact with a high official in the government of Iraqi Prime Minister Nouri al-Maliki, the Obama administration has been aware for two months that the al-Qaida-inspired group that has taken over two Iraqi cities and now is threatening Baghdad also was training fighters in Turkey.
The source told WND that at least one of the training camps of the group Iraq of the Islamic State of Iraq and the Syria, the ISIS, is in the vicinity of Incirlik Air Base near Adana, Turkey, where American personnel and equipment are located.
He called Obama “an accomplice” in the attacks that are threatening the Maliki government the U.S. helped establish through the Iraq war.
The source said that after training in Turkey, thousands of ISIS fighters went to Iraq by way of Syria to join the effort to establish an Islamic caliphate subject to strict Islamic law, or Shariah.
( Another worthy piece analyzing Obama’s world-wide collapse. – JW )
President Obama finds himself in the unenviable position of battling US Congress on a variety of issues while simultaneously having to confront 35 US allies and foreign leaders outraged over his policies whether on Syria and Iran or on the NSA eavesdropping on their personal and private conversations.
There is a silent anti-Obama uprising taking place around the world thanks to his lack of leadership and to the inexperience of the advisers around him.
In the case of the often-reserved Saudi Arabia, the chastising was particularly harsh given the patience the Kingdom exercised in its attempts to resolve the Syrian tragedy using US help, to no avail. Thanks to the incompetency of the team Obama, Syria is now the favorite global destination for Sunni and Shia Islamist pilgrims sporting suicide vests and specialized sniper rifles to kill pregnant women and children.
Recent US polls show Mr. Obama hitting new lows in popularity as his domestic agenda unravels on Obamacare (Wonder if Gallup or Rasmussen are able to conduct a global poll on Obama’s popularity). Mass cancellations by insurance companies against the self-insured (Usually small business owners) is shaking things up for the White House and no amount of spin will pay the difference millions of Americans will have to assume as they begin their journey towards carrying the burden of the biggest welfare state system ever engineered by the far-left. Senators Ted Cruz and Mike Lee look better by the day for their marathon filibuster to defund Obamacare.
It took five years of severe drought, but no umbrella will protect Mr. Obama from the cats and dogs raining on him and the people around him today.
While Mr. Obama feigns ignorance on the NSA eavesdropping (As he did with all the other scandals), the storm brewing overseas is gathering momentum. For sure, the 35 foreign leaders are exchanging opinions and ideas, as I write this, on what it would take to send the right message to the US and it is a question of time before many band together to confront the White House as one voice. It is a political bonanza they are not about to miss even though many spy as much against the US and many have sat on the sidelines when it comes to Syria.
Is the White House aware of this global anti-Obama uprising? Apparently not.
Wednesday night, the Israeli Air Force allegedly bombed two sites in Latakya and Damascus to interrupt the delivery of Russian-made SA-8 mobile missile batteries to Hezbollah. To add insult to injury, a US official leaked the information to the press by claiming the Obama Administration did not want to appear having condoned the operations during sensitive talks with Iran.
I really must be experiencing a re-run of Get Smart.
Has that official leaking the information lost his/her mind? Does he/she not know that with such public explanation the Iranians will seek certain guarantees against other attacks before they proceed with negotiations? Maybe the White House is praying for the Iranians to demand these guarantees that would compel this President to freeze Israeli capabilities from protecting its citizenry under the guise of its peace-loving initiative with a mass murderer like Khamenei. I am telling you, Maxwell Smart really works at the White House today.
On the other hand, this US not-so-smart official who leaked the information just fell in his/her own trap. Possibly, Israel may have figured a way to sabotage the US-Iranian talks the country knows it could only lead to disastrous results by making it a habit to hit the Assad regime every few days or so. Of course, I am not saying this is probable because the Israeli leadership is too wise to let the Iranians create a wedge between them and the US.
Too much elitism in the crowd surrounding Mr. Obama is fogging their perception of what is coming down the pike. Instead of looking at themselves in the mirror, they are doubling down on an agenda already causing an uprising against the policies of Mr. Obama on a worldwide scale.
Maybe First Lady Michelle Obama’s invitation to Prince George’s first birthday celebration will have to be lost in Her Majesty’s mail for this crowd to realize how unpopular the Obama Administration has become.
Nothing like banality to shock their nervous system.