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Oil Breakout Alert - Kuwait, World's Fourth Largest Oil Exporter, Joins Demonstrations Demanding Regime Change

Tyler Durden's picture




 

Crude dropped overnight, after the FT joined the BBC in the "False Rumor Spreading Korner", after the Libyan Investment Authority held newspaper said some OPEC members are looking to raise oil output to avoid any supply shortfalls. Too bad that just like every other previous rumor-based attempt to drive oil lower, this one was refuted within minutes by the same OPEC members that were allegedly boosting their capacity (which does not exist in the first place). Perhaps if the FT had read the note sent out at midnight by Goldman's David Greely, which noted that there is virtually no spare OPEC capacity left, they would have known why they should have come up with a more credible rumor: like Gaddafi committing suicide after watching the latest episode of Sheen's Korner. So much for the rumor mill. Now on to facts, where instead we see a new development which threatens to send oil surging far higher. Reuters reports that formerly peaceful Kuwait has just joined the ranks of demonstrators, demanding the resignation of the prime minister in a peaceful protest early in the day, with a larger one expected later in the day: "Kuwaitis demonstrating outside parliament for the prime minister's ouster came up with a new symbol of Arab discontent on Tuesday by handing out watermelons. "This is for the parliament's poor performance," one of the small band of protesters shouted as he gave a watermelon to a lawmaker making his way into the parliament. The significance was not spelled out, but in local parlance, a person who has a lack of understanding or holds an unrealistic point of view sometimes is called a watermelon. A potentially larger rally was expected later, inspired by spreading Arab protests that toppled leaders in Tunisia and Egypt before sparking the insurrection in Libya and spreading to other Gulf countries including Bahrain, Oman and Saudi Arabia." Kuwait, for those keeping track, is the 4th largest oil exporter in the world.

More:

In Kuwait, six members of the Kuwaiti youth group Kafi (Enough), gave watermelons to a few lawmakers as a signal of their political dissatisfaction in a country that has the most outspoken parliament in the Gulf Arab region.

The demonstration marked a tempered start to a planned day of unauthorised protests by youth groups demanding the removal of Prime Minister Sheikh Nasser al-Mohammad al-Sabah, a member of the ruling family, and greater political freedom.

 Kuwait, the world's fourth largest oil exporter, does not allow political parties, and its parliament is made up of individuals who form loose blocs.

Demonstrations are banned in Kuwait without prior approval and youth groups Kafi and al-Soor al-Khames (Fifth Fence), the main organisers, will present a challenge to the government since they had not sought permission for the protests.

Some of the protest organisers not only want Sheikh Nasser to step down, but seek a replacement from outside the al-Sabah family, which has ruled Kuwait for some 250 years.

 The prime minister, a nephew of the ruler, has survived two non-cooperation motions in parliament since he was appointed in 2006. All other critical portfolios, such as defence, interior and foreign affairs, are held by al-Sabahs. The emir has the final say in all political matters.

Tension with stateless Arabs, longtime residents of Kuwait known as "bedoun" who clashed with police last month in protests demanding citizenship, appeared to be easing after some lawmakers promised to discuss a draft law in parliament on Tuesday that would grant them basic civil rights.

Perhaps SocGen should redo their scenario analysis to account for what increasingly seems to be the endgame: a complete shutdown of the MENA oil output as the region moves through a revolutionary phase inspired exclusively by Bernanke's liberation efforts. In the meantime, we suggest all readers should go long Vespa, or whatever private equity company LBOed Vespa.

As for why last night's attempt to spread a rumor about another "excess capacity" boost is likely the last one, we suggest readers skim the latest note by Goldman's David Greely:

 

 

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Tue, 03/08/2011 - 08:26 | 1029075 AR
AR's picture

TYLER and Staff  /  We always admire, and appreciate your hard work, and consistant reporting (especially on a timely basis) on important news of the day.  We know it takes tremendous work.  There are folks out there who applaud your dedication.  Keep up the good work. 

Tue, 03/08/2011 - 08:36 | 1029096 shushup
shushup's picture

Agreed.

Tue, 03/08/2011 - 08:41 | 1029108 eigenvalue
eigenvalue's picture

The best way to support Zerohedge is to donate. However, I think Tyler needs to upgrade the payment system. As far as I know, not everybody on this planet can donate to Zerohedge. People from countries like China cannot donate money to Zerohedge because Paypal doesn't process their orders.

Tue, 03/08/2011 - 08:53 | 1029133 eddiebe
eddiebe's picture

paypal sucks

Tue, 03/08/2011 - 09:03 | 1029158 eigenvalue
eigenvalue's picture

I think Tyler can provide a mailing address so that people can use postal service to send money to Zerohedge if Paypal doesn't process their orders.

Tue, 03/08/2011 - 11:43 | 1029638 Mark McGoldrick
Mark McGoldrick's picture

Just send it to Sprott Asset Management in Toronto.  I'm sure Tyler has some sort of direct deposit setup with them.

 

 

Tue, 03/08/2011 - 11:09 | 1029508 metastar
metastar's picture

Donations in Yuan might soon become more valuable than dollars, so TD would do well to find a way of accepting donations from China. If our government can accept support from China, so can TD!

Tue, 03/08/2011 - 08:38 | 1029101 Sudden Debt
Sudden Debt's picture

+10

Respect to all of you ZH guys!

Tue, 03/08/2011 - 08:44 | 1029113 malikai
malikai's picture

Agreed. I even click on the links every now and again. Especially when I see a TBTF show up. Makes me feel all warm and fuzzy knowing that the Squid or Morgue pays for their own demise.

Tue, 03/08/2011 - 08:48 | 1029126 NewThor
NewThor's picture

No need to panic, worry or take your mind off of work, the radio or your television.

Ben "Phantasm 666" Bernanke is 100% positive that oil prices will not affect the

robust economic recovery. Jobs will be back to full strength by 2029. And a Unicorn will

be arriving at your door in less than 30 minutes to give you a hummer*. (Choose Oral Sex

or Vehicle. You can't have both.)

 

 

Tue, 03/08/2011 - 08:57 | 1029139 malikai
malikai's picture

Is "oral sex" by a unicorn a euphamism for unicorn horn anal rape?

Tue, 03/08/2011 - 09:13 | 1029180 NewThor
NewThor's picture

"Getting Bernanke'd" = Getting raped while starving to death.

"Getting Barney Frank Bernanke'd" = Getting raped while starving to death

inside your underwater house while it's on fire.

 

Tue, 03/08/2011 - 10:51 | 1029453 downrodeo
downrodeo's picture

+1 well said.

Tue, 03/08/2011 - 08:26 | 1029078 johnQpublic
johnQpublic's picture

not good

 

i feel a racist joke coming with the whole watermellon thing,but i'll leave that to the next guy

 

handing obama watermellon and fried chicken comes to mind.....

Tue, 03/08/2011 - 08:40 | 1029103 Sudden Debt
Sudden Debt's picture

please... tell the joke :)

you make me curious :)

Tue, 03/08/2011 - 08:40 | 1029105 Twindrives
Twindrives's picture

Obama graduated from fried chicken and watermelon in 2008. 

 

He's now dining on elitist specialties like middle class taxpayers and retired pensioners.  Bernanke prepares his dishes.   

Tue, 03/08/2011 - 08:42 | 1029107 Peace is the x-axis
Peace is the x-axis's picture

Down Under those of the "Green" political persuasion are commonly referred to as watermelons. Green on the outside. Red on the inside.

http://www.doubletongued.org/index.php/dictionary/watermelon/

Tue, 03/08/2011 - 08:42 | 1029109 New_Meat
New_Meat's picture

Watermellon: "Green" on the outside, "Red" on the inside.

Tue, 03/08/2011 - 08:44 | 1029114 Sudden Debt
Sudden Debt's picture

ha... ha... American humor?...

 

YOU GUYS REALLY NEED TO WORK ON THAT ONE!!

It's like watching a seinfeld show! You don't know what to do: switch the channel or cry!

Tue, 03/08/2011 - 08:49 | 1029124 Gene Parmesan
Gene Parmesan's picture

Blasphemy!

Tue, 03/08/2011 - 08:50 | 1029129 New_Meat
New_Meat's picture

SD: might have just a skosh too much subtlety for ya. ;-)

- Ned

{but I still love your avatar}

Tue, 03/08/2011 - 08:58 | 1029145 Snidley Whipsnae
Snidley Whipsnae's picture

Just couldn't resist, eh?

Tue, 03/08/2011 - 08:29 | 1029080 gordengeko
gordengeko's picture

Think we need those Ju's to start making it snow over there.

Tue, 03/08/2011 - 08:29 | 1029081 Temporalist
Temporalist's picture

Everyone's favorite Marc Faber is long oil...and PMs, AG and RE.

Bullish on Energy

Marc Faber, Editor & Publisher of The Gloom, Boom & Doom Report discusses why he is bullish on energy in the long term.

http://www.cnbc.com/id/15840232/?video=1832818418&play=1

Tue, 03/08/2011 - 08:34 | 1029087 velobabe
velobabe's picture

Bloomberg: experts say, oil and gold spikes can't last.

experts, mind you tyler, experts in the field of experting. guess silver isn't in a spike.

bitchez†

Tue, 03/08/2011 - 08:46 | 1029118 snowball777
snowball777's picture

X is an unknown quantity. Spurt is a drip under pressure. So experts must be...

Tue, 03/08/2011 - 08:35 | 1029093 shushup
shushup's picture

It's for America to get rid of our regime - Obamonster(and his czars) and Bernankenstein.

Tue, 03/08/2011 - 08:50 | 1029127 snowball777
snowball777's picture

Oh you poor man...you may want to get a sock or something to stuff in those.

Tue, 03/08/2011 - 08:36 | 1029094 Gene Parmesan
Gene Parmesan's picture

Per the great Hibah Yousuf at CNN today, the "Oil and Gold Rally Won't Last."

http://money.cnn.com/2011/03/07/markets/commodities_oil_gold_predictions/index.htm?source=cnn_bin&hpt=Sbin

Of course, if you dig into Ms Yousuf's LinkedIn page you'll see that she graduated in 2009 with a journalism degree, and has worked 6 internships at places like Muslim Girl Magazine and NPR. That apparently qualifies her to be a reporter for CNNMoney.com.

Tue, 03/08/2011 - 08:41 | 1029104 malikai
malikai's picture

NEW YORK (CNNMoney) -- Oil above $100! Gold hitting new records! Don't fear the headlines. Most market experts think oil and gold prices will settle down as the unrest in North Africa and the Middle East region subsides.

Ok that was a good morning laugh. Like this is just some transient thing that will just fade away like the housemates from a big brother show.

Tue, 03/08/2011 - 08:44 | 1029115 Gene Parmesan
Gene Parmesan's picture

The real nugget was at the end:

The handful of experts who did raise their forecasts for gold cited increased buying by consumers in Asia and the Chinese central bank, which is battling against increasing inflation in the country.

"Consumers in Asia" - are there many of those? And I'm sad to hear that they're suffering inflation over there. Better there than here I suppose, but still unfortunate.

 

Tue, 03/08/2011 - 08:47 | 1029119 Sudden Debt
Sudden Debt's picture

Poor Azians with their inflation issues....

 

 

Tue, 03/08/2011 - 08:50 | 1029131 malikai
malikai's picture

In fact, my wife is in China. And I can attest to extreme inflation over there for the last year. It has put a real hamper on things. And I can also attest to extreme difficulty in aquiring silver in the retail market there. Gold isn't so hard to get ahold of, but silver is practically nonexistent, and has been for the last two months. Something strange is brewing there with regard to PMs. While I can get silver by the bucketload here in London still, despite all the press surrounding shortages, there is none to be had for retail in the center of the world.

Tue, 03/08/2011 - 09:31 | 1029225 SilverRhino
SilverRhino's picture

Sounds like an arbitrage opportunity to me.

Tue, 03/08/2011 - 09:39 | 1029249 malikai
malikai's picture

It would definitely be, if I didn't have a 20% VAT on silver + premiums + disturbing spreads to pay in London. People in the states who travel to China regularly are probably better able to realize the arb opportunity than I can.

Tue, 03/08/2011 - 09:48 | 1029266 Saxxon
Saxxon's picture

My Mother-in-Law told my wife people in Shenzhen are crossing over to Hong Kong to buy soy sauce! 

Perhaps William Banzai can confirm.

Tue, 03/08/2011 - 08:47 | 1029117 Temporalist
Temporalist's picture

That is funny.  What's even funnier is that most of the people in the survey link that did change their mind on gold have INCREASED their projections from the last survey and most of the projections are at a higher POG than at present.  http://money.cnn.com/markets/storysupplement/investment_strategists/?iid=EL

Tue, 03/08/2011 - 09:04 | 1029156 Snidley Whipsnae
Snidley Whipsnae's picture

Anyone have a standing photo of Ms Yousuf?

Tue, 03/08/2011 - 08:36 | 1029098 malikai
malikai's picture

Oh and just in time for the premarket smashdown. All those chumps still short are gonna be in a world of hurt soon if this pans out.

Tue, 03/08/2011 - 08:43 | 1029110 Sudden Debt
Sudden Debt's picture

actually no.

Oil up = less purchasing power = less corporate "profits"

 

I was going to also say less tax revenue but those big companies that got bailed out won't pay any taxes for the next 20 years as they can write off their taxes on the bailout money they "refunded".

Tue, 03/08/2011 - 08:45 | 1029116 malikai
malikai's picture

I'm confused by this. Did you reply to the comment you thought you replied to?

Tue, 03/08/2011 - 08:49 | 1029123 snowball777
snowball777's picture

You might want to clarify in exactly which securities the aforementioned chumps are short.

Tue, 03/08/2011 - 08:55 | 1029135 Sudden Debt
Sudden Debt's picture

what I mean is this:

 

The market will take a serious dip if oil stays high like this.

 

Never have petrol prices been so high here in Europe for example. This is not only because of higher oil prices but because governments tax the petrol prices to smoothen their deficits.

Normally we have what we call a “clicket” system which lowers the taxes if oil goes up to much. This system has been cancelled.

At this rate, is oil hits 200 dollars a barrel, we’ll be looking at 4 euro per liter. = 21$ per gallon

 

These prices are now already starting to cripple the transport sector very noticeable these last few days. It’s just not profitable anymore to ride out for them with fixed prixes when oil is so high. Expect DHL and UPS  to really take a hit here in Europe as they also have negotiated prices with their customers.

 

1.637 euro /Liter

=

8.632 dollar / gallon

 

 

(1 gallon = 3,78541178 liter )

 

 

First transportation and logistics will crash followed by retail....

The economy can only prosper when oil is cheap = FACT.

Tue, 03/08/2011 - 09:02 | 1029148 malikai
malikai's picture

I'm in London. They do the same dirty shit here too. There's no doubt that this oil shock will lead to recession and almost certainly recessionary collapse of oil prices in the interim. The only question is what levels the peak and trough will be. Its clear the loser in all this is the living working class. But I doubt TPTB give a flying fuck. They probably want us all dead or working their corporate farms anyway. 

Tue, 03/08/2011 - 08:49 | 1029125 bullionbaron
bullionbaron's picture

Potential Gold/Silver targets based on $200 oil and previous ratios being repeated:

http://www.bullionbaron.com/2011/03/goldoil-and-silveroil-ratios-then-an...

Tue, 03/08/2011 - 08:52 | 1029132 max2205
max2205's picture

And this. Cramer calls for 1,000 pt DOW rally when Gadf goes.

Tue, 03/08/2011 - 08:56 | 1029141 Sudden Debt
Sudden Debt's picture

2 years ago, I actually watched that moron's show.

Just don't listen to it and don't read his stuff or you'll get bankrupt.

Tue, 03/08/2011 - 09:01 | 1029151 snowball777
snowball777's picture

1000 call for Cramer to go regardless of what the DOW or Col Wake'n'Bake do.

Tue, 03/08/2011 - 09:08 | 1029170 malikai
malikai's picture

Col Wake'n'Bake.. Lol.. He does look like quite the stoner.

Tue, 03/08/2011 - 09:58 | 1029286 snowball777
snowball777's picture

There's little doubt that Q'Daffy smokes more weed and hash than a gaggle of Cypress Hill fans...it's a bedouin thing (yeah, you thought those tents were protection from the sun).

Tue, 03/08/2011 - 08:52 | 1029134 r101958
r101958's picture

They raise their 'forecast' for 2Q11 to 105 for Brent while it is at 115 right now. Hmmmmm, brilliant prediction. Considering current events I find that 'forecast' pretty bearish.

Tue, 03/08/2011 - 09:01 | 1029147 snowball777
snowball777's picture

Unleaded: $3.89/gal

Premium: $4.09/gal

Tue, 03/08/2011 - 09:04 | 1029153 falak pema
falak pema's picture

So according to the bears, Marc Faber club, we now have a choice between WW3 and grand deflation. Which will it be? In the meantime its probably QE-3 and grand inflation, until we go over the cliff. I think Obama will permanently locate to Hawai bunker and leave Washington to those who go down in flames and get all the blame when Wall Street implodes.

Tue, 03/08/2011 - 09:13 | 1029178 snowball777
snowball777's picture

To be concise, a choice between war 'here' or 'over there'.

 

Tue, 03/08/2011 - 09:21 | 1029198 falak pema
falak pema's picture

You snowballing the roller coaster of an all american super bowl type event where 'people' play 'elites' in a no holds barred fight club? ZH as quarterback...on grass roots USA squad?

Tue, 03/08/2011 - 10:05 | 1029313 snowball777
snowball777's picture

I'll play defense for the 'roots'; middle linebacker, if only for the chance to sack an 'elite' QB or helmet-to-helmet their WR.

Tue, 03/08/2011 - 09:18 | 1029192 Temporalist
Temporalist's picture

Too bad the RE market in Hawaii is screwed:

Hawaii ponders moratorium on home foreclosures

"So many Hawaii residents are losing their homes that lawmakers are threatening a five-month foreclosure moratorium to buy time for homeowners to get back on their feet."

http://www.hawaiinewsnow.com/Global/story.asp?S=14193234

Tue, 03/08/2011 - 09:09 | 1029168 Sqworl
Sqworl's picture

Tyler: I know how hard you work to provide ZH community with breaking news and spot on analysis.  More important your outting of government deception is making me think that it's time to take ZH to the next level...:-)

Tue, 03/08/2011 - 09:16 | 1029188 falak pema
falak pema's picture

You proposing TD to run for presidential spot in 2012?

 

Tue, 03/08/2011 - 09:20 | 1029196 Temporalist
Temporalist's picture

I think he means make the site 3D.

Tue, 03/08/2011 - 09:22 | 1029205 falak pema
falak pema's picture

Wow, I'll have to buy special glasses!

Tue, 03/08/2011 - 09:25 | 1029206 falak pema
falak pema's picture

Oups, forget this one!

Tue, 03/08/2011 - 09:52 | 1029271 Hulk
Hulk's picture

Banzai can create the birth certificate. He did an excellent job creating Obama's...

Tue, 03/08/2011 - 09:25 | 1029214 HedgeFundLIVE
HedgeFundLIVE's picture

oil, thinking it will see short term highs of 122ish, then correction to 90ish level: http://www.hedgefundlive.com/blog/crude-oil-rally-which-sectors-to-buy-and-stay-away-from

Tue, 03/08/2011 - 09:28 | 1029218 Sqworl
Sqworl's picture

Is that a Tell?..short oil?...lol

Tue, 03/08/2011 - 09:28 | 1029217 freedmon
freedmon's picture

I'm curious why the goldman report is long gold, platinum, and copper, but not silver.

Tue, 03/08/2011 - 09:37 | 1029238 UninterestedObserver
UninterestedObserver's picture

Sorry can't talk have a fuckload of watermelons to hand out....

Tue, 03/08/2011 - 09:50 | 1029272 tom a taxpayer
tom a taxpayer's picture

"Kuwaitis demonstrating outside parliament...came up with a new symbol of Arab discontent on Tuesday by handing out watermelons. "

Americans demonstrating outside Congress could use lemons.

Tue, 03/08/2011 - 10:01 | 1029307 falak pema
falak pema's picture

water melons are a sexual symbol. It implies that over-ripe bubbles are like bubble gum, they tend to go pop. It's a warning to the rulers to watch their nuts as there is much street  chatter of nut crackers. Swing low, swing slow, and don't go for a blow job when you can walk on to slippery snow or oily slick of goo. Walk on the wild side and you find yourself in Benghazi of Muscat. Omanous sign of the times.

Tue, 03/08/2011 - 10:18 | 1029362 campag
campag's picture

beware its roll over time for next few days in oil futures. going long in the wrong contract or April contracts could be costly .  

Tue, 03/08/2011 - 10:27 | 1029388 ivars
ivars's picture

USD will not collapse.

There is only one scenario: relatively strong USD and punctuated supply and extraction investment disruptions continuing at least till the end of 2014, when oil will be 200 USD on average. This leads to steady upgoing oil price curve, with a little ( to Brent 130-145) drop after Q1 2012 when the USA will be in recession again. But this time, due to supply disruptions in all oil producing countries due to political instability, oil prices will NOT fall with 2012 -2013 recession in the USA ( and probably elsewhere) :

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=0

http://saposjoint.net/Forum/download/file.php?id=2608

http://saposjoint.net/Forum/download/file.php?id=2609

Graphs were made on February 6th taking into account typical de cooperation patterns after too much cooperation (globalisation, cheap credit, herding) caused sharp crisis ( Lehman-March 2009) and its effect on oil prices. Once oil started to grow with revolutions all over the place, further developments became clear, and mappable.

De cooperation as natural reaction to too much cooperation that lead to the boom and bust will ensure countries and companies will start to play zero sum game, leading to short term outlook and practical solution dominance over world wide Utopian schemes. And leading to conflicts as ultimate de cooperation.

The logical thing is , that USA will be forced to return to fiscal prudence before it will run up real inflation by rising oil prices which renders all extra spending senseless as added value moves to oil producers and fiscal deficits and FED actions threatens Greek style 10% interest rate on Treasury bills, which , in turn, means 1,4 trillion USD to service debt alone.

And sharp return to fiscal prudence after current record deficits (February 2011-all time record =223 billion USD in 1 month) means relatively strong USD and recession again.

 

Tue, 03/08/2011 - 11:52 | 1029678 falak pema
falak pema's picture

dream on...was a nice tv series...

Tue, 03/08/2011 - 15:16 | 1030460 freedmon
freedmon's picture

It's a bit cynical, but you might be right: use QE to goose the economy a bit and export some chaos abroad. Once that has done its work, cut the QE, turn inward with a vicious austerity program, and try the blame the people for the budget shorfalls. If there's a new recession, you say it's because of excessive social spending, collective bargaining rights, etc. "We fixed the old recession thanks to the brilliance of Wall Street. Just look at the S&P! See how much it rose! Now gimme your pension!"

If this is what they're doing, they're counting on the public having the collective memory of a gnat, and staying pacified. But remember that these people are dealing from a neoconservative playbook, and the cornerstone of the neoconservative ideology is that people are completely stupid and must be lied to at all times.

Tue, 03/08/2011 - 10:35 | 1029418 Pinky
Pinky's picture

"Ralf Norrman and Jon Haarberg (1980) explore the semiotic role of cucurbits in Western literature and culture and extend this analysis to selected non-Western cultural contexts. Focusing on melons, watermelons, and cucumbers (as well as other domesticated cucurbits), these authors note that cucurbits generally have deep, profound, and complex multivocal symbolic associations with sex and sexuality, fertility, vitality, moisture, abundance, opulence, luxury, gluttony, creative power, rapid growth, and sudden death. More specifically, they note that melons are highly associated with status in colder climate European societies because historically they were "seasonal, expensive and scarce, with all the symbolic development that a commodity with such characteristics usually goes through" (Norrman and Haarberg 1980: 16). Cucurbits also appear frequently in non-Western cosmologies, for example, "in Burmese and Laotian mythology, the creation of man started from a cucurbit" (Norrman and Haarberg 1980: 26). As with other key symbols marked by binary oppositions, symbolic meanings attached to cucurbits can also be employed to convey a broad variety of negative symbolic associations along race, class, and gender lines."

http://www.cambridge.org/us/books/kiple/cucumbers.htm

 

Tue, 03/08/2011 - 10:44 | 1029437 Flakmeister
Flakmeister's picture

If that was not a "cut and paste", I am very impressed, otherwise, it is clear that you have too much time on your hands :)

Tue, 03/08/2011 - 12:01 | 1029720 falak pema
falak pema's picture

La cucurabita, la cucurabita...what a melody to play to a ripe watermelon senhorita in her hacienda.

Tue, 03/08/2011 - 11:47 | 1029650 americanspirit
americanspirit's picture

"in local parlance, a person who has a lack of understanding or holds an unrealistic point of view sometimes is called a watermelon" As in 'junk'.

 

A new perjorative for junk-writing trolls has entered the ZH lexicon. Watermelonz, bitchez.

Tue, 03/08/2011 - 13:01 | 1029940 skunzie
skunzie's picture

With all the demonstrations and calls for new regimes in so many of the OPEC countries, will this potentially lead to their break-up, and if so, will it lead to cutthroat competition and a possible crash in the price of crude?  Just wondering.  And, like the weather, just wait till tomorrow and I can provide a 100% accurate forecast of yesterday's weather!

Tue, 03/08/2011 - 13:10 | 1029986 NotApplicable
NotApplicable's picture

Kuwait? Demonstrating?

Wait a minute, didn't the US liberate them in 1991?

So, the very babies they saved from the "incubators of death" are now rising up.

Funny how that all works.

Tue, 03/08/2011 - 15:20 | 1030473 SmittyinLA
SmittyinLA's picture

Actually as oil assets get transferred from dictatorships to Socialist governments the prospect of boycotts, cutoffs and cartels goes down, not up.

When the dictators ran the show they could afford to turn off the spicots and drive prices up, when the Socialist mob runs to valves they wont turn off the flow for anything, any loss in oil flow results in an immediate power shift and loss of income and benefits (free food, free healthcare, free rent).

Take Northern Iraq/Kurdistan for an example, now  that those oil assets have been transferred from Saddam to the Kurd mob they wont turn off the flow until the reservoir is empty.

Do NOT follow this link or you will be banned from the site!