Friday, December 26, 2014

The best explanation for the drop in oil...and its all about Saudi Arabia & Iraq.

Saudi Arabia and Iraq are at war.  A proxy war but war none-the-less.  Check this out from OilPrice.com
Some commentators have offered a more conspiratorial theory for the Saudis wanting to get rid of Assad. They point to a 2011 agreement between Syria, Iran and Iraq that would see a pipeline running from the Iranian Port Assalouyeh to Damascus via Iraq. The $10-billion project would take three years to complete and would be fed gas from the South Pars gas field, which Iran shares with Qatar. Iranian officials have said they plan to extend the pipeline to the Mediterranean to supply gas to Europe – in competition with Qatar, the world's largest LNG exporter.
“The Iran-Iraq-Syria pipeline – if it’s ever built – would solidify a predominantly Shi’ite axis through an economic, steel umbilical cord,” wrote Asia Times correspondent Pepe Escobar.
Global Research, a Canada-based think tank, goes further to suggest that Assad's refusal in 2009 to allow Qatar to construct a gas pipeline from its North Field through Syria and on to Turkey and the EU, combined with the 2011 pipeline deal, “ignited the full-scale Saudi and Qatari assault on Assad’s power.”
“Today the US-backed wars in Ukraine and in Syria are but two fronts in the same strategic war to cripple Russia and China and to rupture any Eurasian counter-pole to a US-controlled New World Order. In each, control of energy pipelines, this time primarily of natural gas pipelines—from Russia to the EU via Ukraine and from Iran and Syria to the EU via Syria—is the strategic goal,” Global Research wrote in an Oct. 26 post.
Read the whole thing here.

So you think the Israeli's are the cause of the problems in the Middle East?  Not bloody likely!  The chief villains are the Saudi's.  They've been behind so much US pain it isn't even funny.

Some call the US the great Satan.

They're wrong.

Look at Saudi Arabia.  They're playing an old skool game and no one seems to be trying to stop them.

6 comments :

  1. Saudi Arabia is the enemy.
    For reasons that would likely see my already sketchy posting privalages revoked were they enunciated, they are the enemy.

    In this, Saudi has done nothing wrong, unfair, unethical, anything.

    OPEC works to create a 'fair' oil price for producers and consumers. It does this by establishing production quatas for its members.

    When OPEC controlled the vast majority of production, is was quite easy for OPEC to tightly controlled the price.
    But that is no longer the case. OPEC controls a much smaller proportion of world production than it once did.

    OPEC cuts production to prop up the price, and none OPEC producers increase their production necessitating further OPEC production cuts.

    Expecting US shale, Canadian Tar and UK north sea to be allowed to pump at full blast, yet demanding Saudi runs at half pumps is rather unfair.

    As a side note, this is why 'free marketers' say so little about cartels and other attempts to price fix. The advantage always goes to those who cheat the cartel or sit outside of it.

    ReplyDelete
    Replies
    1. so you're saying that the Saudi's couldn't be behind this sudden and unexpected oil drop all evidence to the contrary?

      Delete
    2. They are, but its not 'cheating'
      Saudi is pumping every barrel of oil it can, just like everyone else is.
      Expecting Saudi to pump at 75% so everyone else gets a better price is unrealistic

      Delete
  2. Actually, it's largely a case of supply and demand, and world demand has gone down while US production has gone up. OPEC, driven by KSA, has refused to drop production so that is a factor, but not the principle one.
    Pepe's been all over this pipeline -- "Pipelinestan" -- for years and it may be a factor, but the larger influence is the US acting against Iran. I wrote an article about "The Caliphate" seen here.

    ReplyDelete
  3. I was reading you post leaving Bagdad and this popped us:
    Request for quotes for delivery of gasoline, diesel and Jet A1 with FSII to Al Asad Air Base in Iraq
    Solicitation Number: SP0600-15-Q-0209
    Agency: Defense Logistics Agency
    Office: DLA Acquisition Locations
    Location: DLA Energy

    This can be found at:https://www.fbo.gov/? s=opportunity&mode=form&id=cd8d51d9af01c96ff6fd21c4a34beffd&tab=core&_cview=0

    Looks like some planners in future operations are transitioning to current ops

    ReplyDelete
  4. Its ..complicated..

    I do consider the Saudi's enemies.. when you see how many hate-mosks they finance in Europe .. but the current 'oil war' seems to be in our favor also, it cripples Russia for one and they deserve a beating after Georgia , Ukraine and MH17.
    It is weird how we choose our friends and enemies though, before the 2nd Gulf War Irak was the only Arab nation who did not have a significant Al KAida presence.. thanks in part to its 'wonderful' dictator...

    On the other hand, I am not that consistent myself, since I wanted Sadam taken out during the first of them wars already.. and who knows what that would have done..
    Does anyone else get the feeling no one really knows what they are actually doing?

    ReplyDelete

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