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Baiting the Bear

06 Oct

[courtesy Google Images]

[courtesy Google Images]

The Wall Street Journal (“Saudi Arabia Cuts Oil Prices Amid OPEC Price War”):

 

“On Sunday [October 4, A.D. 2015], Saudi Arabia made deep reductions to the prices it charges for its oil, hard on the heels of cuts last month by rival producers in the Gulf.

“With U.S. production still increasing despite lower oil prices, members of the Organization of the Petroleum Exporting Countries are battling to keep their share of the last growing markets in Asia.

“The move comes as Iran, Iraq and other countries in the Middle East made deeper cuts in their official prices than Saudi Arabia last month.

“Saudi Arabia has vowed to keep pumping at high levels as it hopes lower oil prices will stimulate Asian demand and hit rival production in the U.S. that is expensive to produce.”

 

The Saudi price war on crude oil is largely seen as a Saudi attempt to diminish or destroy America’s increased reliance on fracking.

And it’s clearly true that the resulting price fall from over $100/barrel to under $50/barrel has devastated the American fracking industry.

However, while a falling global price of crude oil has damaged the American fracking industry, it hasn’t hurt, and may even have helped, the overall American economy by providing cheaper energy costs.  It’s possible that the US government is willing to sacrifice the US oil industry in order to support the US economy.

 

•  The only national economies that have been damaged by the Saudi price decline are those of nations whose income and standard of living are primarily derived from the sale of their crude oil. Any of the OPEC nations would be examples of national economies that are significantly dependent on the sale and profits derived from selling their crude oil to foreign buyers.

OPEC nations should be furious that the Saudis have pushed oil prices down by over 50% in the past 14 months.  We can suppose that some of those OPEC nations would be willing to work to destroy the Saudis’ power to set crude oil prices.

 

•  However, the single biggest—and most dangerous—victim of falling oil prices is Russia. Russia’s economy and standard of living depend to large extent on the sale of Russian crude oil.  A 50% price decline has to be a tough pill for President Putin to swallow.

More, there’ve been claims that the US expressly encouraged the Saudi’s to lower the price of crude oil last year for the primary purpose of injuring Russia as retribution for Russia’s taking of the Crimea as well as for Russia’s continuing support of Ukrainian separatists and rebels.

If Russia was the real target behind the US and Saudi moves to lower the price of crude oil, Russia should be angry at the US and at the Saudis.

And now, Russian military has entered the Middle East for the expressly declared purpose of protecting Syria’s President Assad from rebels within Syria.

Who knows?  Maybe that claim is true.

 

•  Nevertheless, I keep wondering if Russia’s real target is Saudi Arabia.

For over a year, Russia has had reason to be angry at the Saudis and the US.  If Russia could help topple the Saudi government, Russia would almost certainly cause the price of crude oil to rise—which would be good, probably great, for Russia.

More, the Saudi’s decision back about A.D. 1971 to sell their crude oil for only US fiat dollars was the cornerstone for the fiat dollar being valued at the world’s “petro currency” and World Reserve Currency.  If something were to happen to destabilize or destroy the Saudi government, the US dollar would lose much of whatever remains of its value as the “petro-dollar” and World Reserve Currency.  The US financial system and economy would suffer serious declines if the dollar were separated from Saudi support.

Thus, it seems likely that, given any sort of opportunity and viable pretext to openly or covertly strike and/or topple the Saudi government, Russia would happily do so.

Helping Syria’s President Assad is Russia’s current justification for placing military in the Middle East.  But I suspect that Russia’s real objective is to punish Saudi Arabia for helping to attack last year’s price for Russian crude oil.

If the Saudis started the crude oil price decline last year, they could stop (or at least slow) that decline today.  Instead, they are choosing to continue to suppress the global price of crude oil.

Insofar as the Saudi’s  continue to push oil prices even lower, they’re continuing to bait the bear.  That’s a dangerous game.  No one should be surprised if the bear reacts violently.  No one should be surprised if serious pressure is brought to “bear” on the Saudis.  No one should be surprised if Saudi Arabia–a fabulously rich but inherently weak and unstable nation–is pushed into oblivion in the next two or three years.

 
7 Comments

Posted by on October 6, 2015 in Middle East, Oil, Russia

 

Tags: , , ,

7 responses to “Baiting the Bear

  1. dog-move

    October 8, 2015 at 3:57 AM

    As the Petro Dollar goes away, Russia and China will fill the void in the Middle-East and become the security force there. As they assume control of the Middle-East, they will also establish a rival to the Petro Dollar via the BRICKS structure. Oil prices will recover as will commodity prices.

     
  2. Anthony Clifton

    October 9, 2015 at 5:26 PM

    then let’s all pray for the Zionist Entity to be reduced to ashes….immediately
    if not sooner.

    http://careandwashingofthebrain.blogspot.com/2015/10/the-myth-of-muslim-suicide-bomberits.html

    through all the fog banks of History the money changers and pharisees
    remain the same on both sides

    and Jesus himself declared that the “TARES” will be rounded up and put into
    the eternal “Ovens” of Truth @ Matthew 13:39-43

    http://forward.com/news/breaking-news/322392/new-york-mayor-bill-de-blasio-plans-visit-to-israel

    no one on Earth HAS to be a “Jew” – especially not the Gog & Magog
    “Proselytes” to Talmudic Judaism from Birobidjan

    Israel is a people {12 Tribes/company of Nations}
    not a stool sculpture deity cult compound for the
    “Proselytes” to Talmudic Judaism {an Anti-Israel religion of BAD FAITH}
    John 8:44….according to Jesus.

    http://biblehub.com/text/hosea/1-11.htm

    by the way….what is Jesus’ Daddy’s “Business”….anyway ?

    http://therealtemple.blogspot.com/2009/02/babylonian-talmudic-beliefs-part-ii.html

    just imagine the improvement in the “economy” of the world without
    blood sucking economic terrorist parasites….claiming to be all 12 Tribes
    who are not even from the Tribe of Judah

    See Daniel 7:18

    http://biblehub.com/interlinear/daniel/7-18.htm

    perhaps Truth could become a valuable commodity
    especially for Babes….

     
  3. dog-move

    October 11, 2015 at 10:06 AM

    “They must teach my People the difference between what is sacred and what is profane and make them understand the difference between what is clean and unclean”. Ezekiel 44:23 NJB
    “For my part, far be it from me to sin against Yahweh by ceasing to pray for you and to instruct you in the good and right way”. 1 Samuel 12:23 NJB
    “Gold and silver will steady your feet; more esteemed than either, good advice. Money and strength make a confident heart; better than either, the fear of the Lord. With fear of the Lord, nothing is lacking: no need to seek for other help”. Ecclesiasticus 40:25-26 NJB

    There is an Ecclesiastical Proverb that I always consider to be wise instruction when in the assembly of the wise and prudent here at Adask.wordpress.com:
    “Attend the gathering of elders; if there is a wise man there, attach yourself to him. Listen to any discourse coming from God, do not let wise proverbs escape you. If you see (or hear) a man of understanding visit him early, let your feet wear out his doorstep”. Ecclesiasticus 6:34-37 NJB
    Alfred, your words and the esteemed words of others written here, are smooth and delightful to the soul to the one that seeks understanding and wisdom in the day of great famine, presently in the land, and in the Day of the Lord, A.D. 2015. May my feet always be able to wear out the doorstep of those who are able to let others see things and instruct in matters that have been openly hidden for many generations.

     
  4. dog-move

    October 11, 2015 at 10:57 AM

    A.C. I’m always on the lookout for “729”.

     
  5. Bruce Cannon

    October 11, 2015 at 6:57 PM

    dog-move,
    @ Alfred, your words and the esteemed words of others written here, are smooth and delightful to the soul
    Indeed! Very smooth, and, Soothing too!

     
  6. Cathy Baldwin

    October 13, 2015 at 1:39 AM

    If I may ask in just plain language (1) why does Jesus return to Jerusalem, Mount of Olives, during the great and final battle to destroy the Jewish people. (2) Why does His return destroys those destroying the earth attempting to obliterate the Jewish people, thereby saving His brethren according to the flesh? (3) Why does He then rule from Jerusalem with the Jewish people. (4) Why is the church is grafted into Israel not the other way around? (5) Are the people in the land of Israel today not Israel? Would it seem the nuclear approach now does not leave time for any other future prophetic fit and only the ‘Zionists’ in Israel today are entering the time of Jacob’s trouble?

     
  7. dog-move

    October 13, 2015 at 6:42 AM

    Jew- the most confusing word in the Bible.

     

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