Bahrain Protests Resume With A Vengeance As Interior Ministry Says "Social Fabric" In Peril, Sets Stage For Another Crude Spike

Tyler Durden's picture

As Gulf stock markets celebrate the lack of Days of Rage in Saudi Arabia on Friday, Bahrain is again reminding that not every country can buy the undying love of its citizens.  Per the AP, "thousands of anti-government demonstrators cut off Bahrain's financial center and drove back police trying to push them from the capital's central square - shaking the tiny island kingdom Sunday with the most disruptive protests since calls more freedom erupted a month ago." As a reminder, in February, Bahrain was the location of some of the most graphic atrocities against protesters. Since then, a swift surge in pressure from Saudi to moderate tensions resulted in an uneasy "ceasefire" although that now appears to have ended. "Demonstrators also clashed with security forces and government
supporters on the campus of the main university in the Gulf country, the
home of the U.S. Navy's Fifth Fleet." And as we pointed out before, should the Bahrain situation reach melting point, religious tensions across the area are sure to flare up: "The clashes fueled fears that Bahrain's political crisis could be
stumbling toward open sectarian conflict between Sunnis and Shiites, who
account for 70 percent of the nation's 525,000 people.
"Add to this resumption of violence the fact that there was another round of protests in Saudi Arabia in front of the Interior Ministry on Sunday, and the "good" news from Friday are now long forgotten.

From AP:

In some neighborhoods, vigilantes set up checkpoints to try to keep outsiders from entering. Bahrain's interior ministry warned Saturday that the "social fabric" of the nation was in peril.

A day after visiting U.S. Defense Secretary Robert Gates urged quick progress toward reform, thousands of protesters gathered before dawn to block King Faisal Highway, a four-lane expressway leading to Bahrain's main financial district in downtown Manama, causing huge traffic chaos during morning rush hour and preventing many from reaching their offices on the first day of the work week.

"No one was able to go to work today. Thugs and protesters were blocking the highway," complained Sawsan Mohammed, 30, who works in the financial district. "I am upset that Bahrain no longer a stable place."

Security forces dispersed about 350 protesters "by using tear gas," the government said. But traffic was clogged until late morning and many drivers sent messages of rage and frustration to social media sites.

"I blame the protesters for what's happened in Bahrain today," said Dana Nasser, 25, who was caught in the traffic chaos and never made it to her office.

About two miles (three kilometers) away, police at the same time moved in on Pearl Square, site of a monthlong occupation by members of Bahrain's Shiite majority calling for an elected government and equality with Bahrain's Sunnis.

Many protesters in recent days have pressed their demands further to call for the ouster of the Sunni dynasty that has held power for more than two centuries.

Witnesses said security forces surrounded the protests' tent compound, shooting tear gas and rubber bullets at the activists in the largest effort to clear the protesters since a deadly crackdown last month that left four dead.

At Bahrain University, Shiite demonstrators and government supporters held competing protests that descended into violence when plainclothes pro-government backers and security forces forced students who had been blocking the campus main gate to seek refuge in classrooms and lecture halls, said Layla al-Arab, an employee at the Arts Collage.

Two protesters sustained serious head injures and hundreds looked for medical help, mostly with breathing problems from tear gas, hospital officials said on condition of anonymity because they were not authorized to speak to the media.

The Gulf kingdom holds particular importance to Washington as the host of the main American military counterweight to Iran's efforts to expand its armed forces and reach into the Gulf.

We believe all these developments are very bullish for oil. While Japanese demand destruction was the prevailing topic on Friday, this has been now flushed out, and with reduced nuclear production capacity, oil will have to step in as an alterantive: as Goldman pointed out on Friday, "The downside pressure on crude prices is likely a near-term effect only. In the medium-to-longer term, once refineries are operational, but with nuclear generation likely still disrupted, the net effect is to the upside for crude prices Today’s earthquake will dramatically impact both supply and demand across the commodity complex. Specifically, in addition to the extensive damage to residential and commercial areas, 12.5 GW of nuclear power generation capacity, 26% of total available capacity and 935 kb/d of refining capacity has been shut down." This means that any interim drop in demand will have to be compensated with a surge in demand down the line. Whether this means a spike in contango, or just a resumption of front contract prices higher, shall be made all to clear when electronic trading opens shortly.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Oh regional Indian's picture

Sunday for some is Tuesday for others.

There is no coming off the accelerator for now. We are now in the grip of Days of Thunder.

The rage with-out is just a reflection of the rage with-in. We've been trapped for so long.

And yet, freedom, the way we think about it, may be awhole other animal than we imagine. Not all rainbows and peace.

Live every day as if your hair are on fire, paraphrasing a famous samurai.


yabyum's picture

I always enjoyed the fine writing of Hunter S. Thompson. I miss him in these vile and doomed times.

bankrupt JPM buy silver's picture

Let an earthquake crumble it, let the fires rage, let it burn to ash, let the waters rise and submerge this rat infested world we call Earth.  The reset button is commencing.  I hope you are ready.

ivars's picture

I did some silver pattern comparison with its own timing as basis, since every commodity etc has difference reaction times after crisis from cooperation to decooperation. This graph for prices 2011-2013 is what I came up with, it seems to be peaking at 45 USD at April 1st and sudden drop to 25 USD when I expect oil will suck money out of silver and possibly gold. Oil is useful commodity, once it becomes scarce ( no fly zone over Libya=war in Libya=war in Arab worlds= was in oil producing region), people will try to secure it, not silver.

After that, quite reasonable prices between 25-32 in 2011-April 2012. After that, silver starts to go up. Either supply problem, or Obamas USD devaluation plan in action ( or threat of devaluation plan), or both supply and USD devaluation threat. Looking at stock market prediction I do not think devaluation will be real, but attempts to devaluate the USD to do something as second recession will hit in Q1 2012 may lead to silver price spike .

Or, rumours the FED is going to be totally changed/liquidated under the government which will win 2012 elections.Not Obama or regular GOP. That would lead to scooping of silver and gold.

That explains a spike during election time. And afterwards high level as e.g. gold standard is reintroduced at different higher level .

Mr. Doom's picture

Meanwhile the western media and Al Jazeera show images of protestors "violently" throwing stones. In Libya it is always protestors being shot at, which group has a pocket full of US dollars is the question I ask.

Good job of manufacturing consent state department!

tom a taxpayer's picture

Bahrain and Middle East bubbling.

Japan need to replace lost nuclear power with oil and gas power ASAP.

Perfect storm for oil prices.

SteveNYC's picture

+ Ben printing fiat like a madman.


An even "more perfect" storm for oil.....

Twindrives's picture

The U.S. government is impotent to stop any of this.  That's what happens when no one wants the POS FED dollar as a bribe anymore.    More unintended consequences, huh Ben?

High Plains Drifter's picture

I hope they get rid of the bastards at the top and tell the US Navy to get their shit and go home. Then the Saudis are overdue for some of this good stuff too.

putbuyer's picture

Finally, some good news

Innocent Bystander's picture

March 20 2011 may indeed be the day, who would have thought, but with so many things happening over the last few days.. I think its better to give this date some serious thought and prepare - Good luck!

bob_dabolina's picture

What "social fabric" ?

That region has been in conflict with itself since the Earth was created.

The middle eastern social fabric IS conflict.

Bicycle Repairman's picture

Exactly.  Bahrain?  "Social fabric"?


Saxxon's picture

+1 bob.  I think they mean the scab of lapdog dictatorship and petrodollars that has been in place all of 60 years and is about to be, uh, dislodged violently.  an unpleasant analogy but none the less accurate.

MarketTruth's picture

So when will Hilary Clinton come on TV saying the Saudi public has a right to peacefully protest as she has done for Libya and other Middle East countries? Oh, wait, can you say NEVER?

EscapeKey's picture

When it's the Saudi's, the right course of action is for the government "to seek to establish peace, and clamp down on unruly radical elements".

DoChenRollingBearing's picture

Global Meltdown Bitchez!

Prepare accordingly...

Jim Billy Bob James IV's picture

I am sure the failure of the Day of Rage last Friday corresponded with the fact the Japanese earthquake dominated the news cycle.  Since all the protest signs are in English and the protesters all seem to be willing to speak with reporters in English, why protest and risk your life if no one is going to see?  If a protester falls in Saudi Arabia, but there is no 24 hour international coverage, does it make a sound? 


Try again another day.

bugs_'s picture

Don't forget anon #opPalestine on march 15.

benb's picture

Gee, isn’t Bahrain where the Saudi Oil is pumped out to the Tankers? Isn’t the rumored Globalist plan to cut off the Saudi Oil? How many Blackwater/XE/SAS/Delta Force guys are standing around dressed in the local garb ready to sabotage the pumping facilities? What did Kissinger say a few weeks ago about Egypt? “… just the first scene in the first act.” or to that effect. A palatable theater must be presented to the peasants so they will go along with the ruse... And we’re the peasants.

aerodynamik's picture

is that crude spike used for poking protesters?

Tense INDIAN's picture

revolutions are timed well so that the price rise can be blamed on them ...n not on printing money

Twindrives's picture

You got it.  Soros and Buffet got behind Obama with exhorbiant amounts of campaign financing so their banker and elitist friends could have a free hand in bringing all the world's peasants under heel.  If you notice Obama and Holder are showing  absolutely no leadership in bringing justice to the citizens. They never will.   They are complicit in the financial crimes being perpetrated on citizens the world over.   

DoChenRollingBearing's picture

+ 1000

NONE of our financial problems have been solved.

NO ONE of significance has gone to jail (Maddof is just a sideshow).

FED delenda est.

Obama out in 2012.

Saxxon's picture

Tense INDIAN, I honestly don't think ANYone is timing this exploding volcano.  You give the Western black ops too much credit.  They don't have what it takes to turn the lava flow in the willed direction. 

Western powers will just continue to wring their hands in public and try to project the illusion of control.

onarga74's picture

Saudi Arabia found the answer...staring at impending chaos they immediately bought a U.S. marketing company and changed the potential Friday disaster into A Day of Wage and gave away 37 billion dollars.  If momma's happy everybody's happy.


PulauHantu29's picture

Will Hillary support Bahrain's Fredom Fighters?

How about Saudi Arabia's pro-democracy protesters?