With everyone's attention in recent months falling squarely on the US oil industry, and specifically how much longer various shale companies will be able to keep operating now that Saudi Arabia is openly on a war path with US marginal producers, we thought it may be an opportune time to remind readers just where America's Top 100 oil fields are located based on the EIA's most recent report. A recap, if you will, of the domestic oil theater of war with America's "closest ally" in the middle east.
Instead of leaving its own production flat in an attempt to stabilize oil prices and hit its "optimistic" outlook sooner rather than never, Saudi Arabia would boost production quite sharply to claw back market share. Specifically al-Naimi, revealed that the kingdom’s oil production in March was 10.3-million barrels a day – a record high. .. Why is Saudi Arabia opening the spigot? There is no doubt that country’s own domestic demand is rising, thanks to heavy investment in new refineries, requiring more production. But it also appears that Saudi Arabia is making renewed push for market share for fear that a gusher of Iranian oil will soon hit the export markets as the Iranian embargo is ratcheted back
As the international community struggles to understand how the interplay between a series of US foreign policy failures and geopolitical wrangling over what are viewed as “strategic” Middle Eastern states has somehow managed to produce multiple bloody proxy wars, there are many who still ask: “Who is ISIS?” A new piece from The Atlantic seeks answers from Iraqis with first-hand experience.
Despite Constant Saudi Bombing, Yemen Rebels Advance, Seize Key Town; Ayatollah Trolls US, Saudis on TwitterSubmitted by Tyler Durden on 04/09/2015 11:58 -0400
It appears that when the US inadvertantly "misplaced" $500 million of weapons in Yemen, the bulk of which fell right in Houthi rebel hands, it created a very credible adversary... for the US and its Saudi-backed coalition allies. Because despite the bombing campaign by the Saudi-headed coalition, AP reports that the rebels seized a key provincial capital in a heavily Sunni tribal area on Thursday as their patron Iran called the two-week air campaign a "crime" and appealed for peace talks. According to media reports the Houthius overran Ataq, capital of the oil-rich southeastern Shabwa province, after days of airstrikes and clashes with local Sunni tribes. The capture marked the rebels' first significant gain since the Saudi-led bombing began.
- Greece pleads cash running out, told to hasten reforms (Reuters)
- ECB Cash Said Likely to Fall Short of Greek Request This Week (BBG)
- Chinese Stock Buying Frenzy Sweeps Into Hong (WSJ)
- Shell’s $70 Billion BG Deal Meets Shareholder Skepticism (BBG)
- Yemen's Houthis seize provincial capital despite Saudi-led raids (Reuters)
- Iran Nuclear Deal Gives Syria’s Bashar al-Assad Reason to Worry (WSJ)
- Slow apps, low battery life limit appeal of Apple Watch (Reuters)
- Gilead’s $1,000 Pill Is Hard for States to Swallow (WSJ)
- The Oil Industry's $26 Billion Life Raft (BBG)
Iran Enters Hornets Nest: Parks Two Warships Off Yemen Coast Immediately Next To Two US Aircraft CarriersSubmitted by Tyler Durden on 04/08/2015 22:30 -0400
The 34th fleet of the Iranian Navy has left for the Gulf of Aden and Bab al-Mandab Strait in line with the country’s policy of safeguarding naval routes for vessels in the region. The flotilla, which comprises the Bushehr logistic vessel and Alborz destroyer, left Iran’s southern port city of Bandar Abbas on Wednesday, Navy Commander Rear Admiral Habibollah Sayyari said on the sidelines of a ceremony to deploy the fleet. And now the punchline: the two Iran warships will now be located in the immediate vicinity of not only two US aircraft carriers, CVN-71 Teddy Roosevelt and CVN-70 Vinson, but well as the big-deck amphibious warship Iwo Jima which as reported before is providing marine support should the situation demand it.
Futures Flat On Minutes Day; Chinese Bubble Spills Into Hong Kong; Biggest Energy M&A Deal In Over A DecadeSubmitted by Tyler Durden on 04/08/2015 07:00 -0400
While US equity futures are largely unchanged, if only ahead of the now daily pre-open market-wide ramp, things in Asia have continued on their bubbly flurry, where China's Shanghai Composite briefly rose above 4000 for the first time since 2008, but it was the surge in the Hong Kong stock market that showed the Chinese bubble is finally spilling over, in the form of a blistering rally on the Hang Seng which rose nearly 4% on immense volume which at 250 billion Hong Kong dollars ($32 billion) was three times the average daily volume over the past year and nearly 20% more than the previous record volume day in October 2007, at the height of the pre-financial crisis bubble.
There is virtually nothing in the substance of the deal for the War Party to attack. To defeat the deal, the War Party will have to defend its three-decade long campaign of exaggerations, distortions and bellicose animosity toward the Iranian state. But that is impossible because the axis-of-evil narrative was never remotely true. What the framework deal actually does, therefore, is to open the door to an eventual US withdrawal from its bloody, failed history of intervention in the middle east. So doing, it would pave the way for a drastic shrinkage of an obsolete war machine that has had no purpose since 1991 except to spill American blood and treasure in a region of the world where it has no business meddling. No wonder the War Party is going hysterical.
Yesterday it was only the US that got the full benefit of the market-wide stop hunt that sent the US market soaring on its biggest opening ramp in 2015 following the worst payroll data since 2013, because Europe was closed for Easter Monday. Which means today it was Europe's turn to celebrate atrocious US data (yes, yes, snow - because somehow tremendous January and February jobs data was not impacted by snow), and in the first European trading session of the week, equities have started off on the front-foot.
The USA set the tone for 21st century magical finance, in which “wealth” was “created” by digital accounting fraud. The effects at home are visible on our landscape of suburban hyperwaste and decrepitating older towns and cities.
As market participants slowly make their way back to trading desks around the post-Easter world, and especially the US where a truncated session on Friday morning ended in tears for anyone hoping for a 2015 US recovery following an abysmal March nonfarm payrolls print, they find that unlike on previous occasions, the equity futures liftathon is nowhere to be found this morning, with the S&P set to resume trading in the red for 2015. Away from Greece, whose future remains in limbo, the biggest development over the holiday weekend was a Goldman note in which the central-bank friendly firm said that "the right policy would be to put hikes on hold for now."
Behold the proposed new Kingdom Tower for Jeddah, Saudi Arabia — at one full kilometer in height, about twice the size of New York’s new Freedom Tower.
Earlier this morning, RT reports that Saudi Arabia rejected Russia’s amendments to a Security Council draft resolution which would see an all-inclusive arms embargo on all parties in the Yemeni conflict. Saudi stocks did not like the news and began to tumble - now down over 3%, back at January lows as the fighting continues to spiral out of control with civilian death toll climbing. At least 185 people were left dead and more than 1,200 wounded as a result of fighting in Aden, a medical official told AFP Saturday, three-quarters of them civilians. In the meantime, Reuters reports The Houthis are gaining ground in Aden, despite the onslaught of airstrikes; and the Saudi ambassador to the United States, said sending ground troops remained "on the table."
When discussing the Iran "deal" which isn't a deal, but merely a " Joint Comprehensive Plan of Action", there are two key things one must keep in mind: the location of Iran's nuclear facilities and its oil infrastructure. Here is a quick take on both.
Yemen descends into chaos as rebels storm the central district in the key port city of Aden (the site of a local branch of Yemen's central bank) while Al Qaeda militants stage raid on a Mukalla prison freeing 300 inmates. Meanwhile, a Saudi soldier was killed along the border while Chinese soldiers arrived to evacuate civilians.