Saudi Arabia

Frontrunning: March 28

  • U.S. stock futures up as investors look beyond failed healthcare bill (Reuters)
  • Ryan's Tax Plan May Get Familiar Foes: GOP's Conservative Caucus (BBG)
  • Congress to Battle Over Spending After Failed Health Bill (WSJ)
  • Trump to End Obama Policies for Paris Climate Accord (BBG)
  • Trump to sign order sweeping away Obama-era climate policies (Reuters)

Goldman Warns OPEC Production Cut Extension Will Backfire, Result In Lower Prices

"Oil prices above $60/bbl would prove self defeating in our view given the flattening of the oil cost curve and the unprecedented velocity of the shale supply response." A decision to extend cuts, "would only exacerbate the backwardation that we project... and created downside risk to our 2018 $58/bbl forecast."

Pepe Escobar: Daesh, Creature Of The West

"According to Saudi intelligence, Daesh was invented by the US government – in Camp Bacca, near the Kuwait border, as many will remember - to essentially finish off the Shiite-majority Nouri al-Maliki government in Baghdad..."

Watch These Geopolitical Flashpoints Carefully

The globalists tend to use what I call a “scattershot effect” when it comes to creating or managing chaos. They set the stage for multiple flashpoints around the world and wait to see which of them works and which of them fails. Not only this, but one successfully executed flashpoint has the ability to give birth to dozens of new flashpoints. They tend to spread, like a cancer. That said, some flashpoints are more dangerous than others. 

An OPEC Deal Extension Isn't As Simple As It Sounds

OPEC’s deal now is trying to send a unified message that the members are making every effort to rebalance the market, so it’s unlikely that OPEC will correct Iraq’s insistence that the deal was forged over export figures rather than production figures.

How OPEC Lost The War Against Shale, In One Chart

Goldman presents a chart which shows just as graphically how exactly OPEC lost the war against US shale: in one word: the cost curve has massively flattened and extended as a result of "shale productivity" driving oil breakeven in the US from $80 to $50-$55, in the process sweeping Saudi Arabia away from the post of global oil price setter

Are U.S.-Saudi Relations Turning Sour?

Time will tell, but cries of victory in Washington by Saudi Arabian Deputy Crown Prince and Defense Minister Mohammed bin Salman seemed hollow and perhaps even apocryphal.