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Oil Surges To $45 After Saudi Troops Invade Yemen

Tyler Durden's picture




 

For the 3rd day in a row, crude oil prices are spiking as the short squeeze morphs into a war premium. Heberler reports that Saudi ground troops have entered Northern Yemen and seized control of two areas in the Saada province. WTI is now above $45...

As we noted previously, boots have been on the ground there (and tank tracks) since early July...

 

But, as Haberler reports, forces seize control of two areas in Yemen’s Saada province in the first actual ground offensive by The Saudis...

Saudi Arabian ground troops have advanced into northern Yemen, in a bid to push back against Houthi Shia militia and forces loyal to ousted president Ali Abdullah Saleh, military and tribal sources said.

 

This is Saudi Arabia's first ground offensive in Yemen since it launched an extensive military campaign in March targeting Houthi positions.

 

The sources told Anadolu Agency that Saudi Arabian troops advanced into Saada province after Houthi militants recently stormed Saudi positions in the southern Saudi province of Jizan.

 

"Saudi ground forces seized control of two areas in Saada province and intend to advance toward Houthi positions," sources said.

 

Yemen descended into chaos last September, when the Houthis overran capital Sanaa and other provinces, prompting Saudi Arabia and its Arab allies to launch a massive air campaign against the Shia group.

 

Pro-Hadi forces – backed by Saudi-led air power – have managed recently to retake Aden and Taiz from the Houthis.

And the result...

 

Makes you wonder who got the nod of the invasion yesterday?

*  *  *

We have however seen this size 3-day explosion before...

Charts: Bloomberg

There are two critical questions here going forward.

First, is this: will this "initial" incursion morph into something much larger, which will put further pressure on Saudi Arabia's already strained budget, requiring still more bond issuance to offset the FX reserve burn?

Second: if this does snowball into an all-out ground invasion will Iran decide that it's finally time to provide more than "logistical support" to the Houthis who, as of late July, were on their heels after losing control of Aden?

 

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Fri, 08/28/2015 - 10:33 | 6481427 froze25
froze25's picture

The so called Saudi Royal's days are numbered the Beast they created is turning on them.  I couldn't be happier as I despise the idea of "Royalty".

Fri, 08/28/2015 - 10:34 | 6481433 Headbanger
Headbanger's picture

You mean the beast WE created...

Fri, 08/28/2015 - 10:35 | 6481437 Consuelo
Consuelo's picture

+1M

Fri, 08/28/2015 - 10:44 | 6481489 realmoney2015
realmoney2015's picture

End the fed! End the petro-dollar! End the wars!

The saudis must have thei own version of Trump running the show. Invade other countries and send in the oil companies. He literally said this!

Fri, 08/28/2015 - 11:05 | 6481530 philipat
philipat's picture

I wouldn't expect Saudi to change its tack now, otherwise all would have been wasted for nothing. The US Frackers are about to go under so it's just another 6 months or so. Then they will be back in control.

And, incidentally, why didn;t gas prices also decline by 65% and stay there commensurately with WTI prices??

Fri, 08/28/2015 - 11:10 | 6481608 cheech_wizard
cheech_wizard's picture

$2.19/gal in rural Missouri... actually was there when the price dropped from $2.37/gal...

Hey, better than a kick in da nutz.

Fri, 08/28/2015 - 11:26 | 6481621 philipat
philipat's picture

Send it to LA. Deez Nutz??

Fri, 08/28/2015 - 11:52 | 6481839 knukles
knukles's picture

Allah Ackbar! 
See, if we just picked up and went home, they'd be up to these antics in "jig" time.

Fri, 08/28/2015 - 12:15 | 6481950 Manthong
Manthong's picture

The Saudi government is evil.

They are the US’s ally.

Makes sense to me.

 

They are probably heavily invested in Google.

 

Fri, 08/28/2015 - 12:43 | 6482073 nope-1004
nope-1004's picture

Yay!!!!  Democracy is spreading.  Love me some freedom. /s

Fri, 08/28/2015 - 13:13 | 6482188 Manthong
Manthong's picture

I miss-spoke..

 

They are the US Government's Ally.

..not the country’s

Fri, 08/28/2015 - 13:17 | 6482221 Four chan
Four chan's picture

anyone on here watch tyrant?

Fri, 08/28/2015 - 15:58 | 6482911 Theosebes Goodfellow
Theosebes Goodfellow's picture

What is all the bitching about? Mulsims are killing Muslims and you call it a bad thing? IMHO this is a win-win. Let's sell 'em long barrels and short fuses. Allahu Akbar my ashtar.

Fri, 08/28/2015 - 16:17 | 6482984 COSMOS
COSMOS's picture

We freed Kuwait from Iraq, I am sure we will free Yemen from the Saudis with a coalition of the Willing and Righteous.

Fri, 08/28/2015 - 18:03 | 6483213 newbie vampire
newbie vampire's picture

If we really really want to help the situation............................  We ought to sell arms to both sides.

It will keep both corporate Amerika and the MIC very happy.

It will state in no uncertain terms our commitment to human rights and support for our Muslim brethren.

Fri, 08/28/2015 - 11:13 | 6481625 froze25
froze25's picture

Dez Nuts 2016!

Fri, 08/28/2015 - 11:55 | 6481846 Took Red Pill
Took Red Pill's picture

If voting changed anything, they'd make it illegal. - Emma Goldman

 

Did you know nothing in the Constitution explicitly guarantees our right to vote?

 

http://www.politifact.com/wisconsin/statements/2013/may/30/mark-pocan/us-constitution-not-explicit-right-vote-wisconsin-/

Fri, 08/28/2015 - 12:05 | 6481907 El Vaquero
El Vaquero's picture

The constitution does not guarantee all rights even under a strict reading.  You can still be deprived of life, liberty and property, so long as you get due process..  Pocan needs to read the Constitution again, because with the caveat of losing rights via due process, the right to vote is in there.  Amendment 26. 

Fri, 08/28/2015 - 11:16 | 6481642 NoDebt
NoDebt's picture

Because gasoline isn't made from oil any more.  It's made from corn and whale blubber.

Fri, 08/28/2015 - 11:24 | 6481699 philipat
philipat's picture

You mean Joe Biden?

Fri, 08/28/2015 - 12:03 | 6481892 FreedomGuy
FreedomGuy's picture

Because a large part of your gas bill is taxes, directly at the pump and along the way.

Fri, 08/28/2015 - 12:57 | 6482135 Pure Evil
Pure Evil's picture

One also has to take into account the time of year which EPA mandates require specific blends to reduce smog. Summer driving requires more exotic blends than winter driving. California also has mandates that require specific blends to reduce smog.

Another factor is refinery availability. Some refineries go off line at specific times of the year for what is called turnaround whereby maitainence and upgrades are implemented.

Also take into consideration that some refineries have been mothballed due to reduced gasoline consumption. This puts more of a burdened on refineries still in operation, with the vast majority running at 95% capacity

Fri, 08/28/2015 - 10:48 | 6481502 froze25
froze25's picture

If you mean, "We" the criminals in our Gov't and the Saudi Royals than I fully agree.

Fri, 08/28/2015 - 11:07 | 6481579 SSRI Junkie
SSRI Junkie's picture

.

Fri, 08/28/2015 - 11:33 | 6481747 Took Red Pill
Took Red Pill's picture

Evidence of more ties between gov’t/military and big banks/private companies; JPMorgan Hires a Notorious 4-Star General as Financial Adviser;

http://www.globalresearch.ca/jpmorgan-hires-as-financial-adviser-a-notorious-4-star-general-former-commander-in-iraq/5472288

 

 

Fri, 08/28/2015 - 10:35 | 6481435 Consuelo
Consuelo's picture

The House of Sod will be gone within the space of (5) years.   And that is being Way generous...

Fri, 08/28/2015 - 11:05 | 6481582 NoDebt
NoDebt's picture

House of Sod?  Had to look that one up:

https://en.wikipedia.org/wiki/Sod_house

Fri, 08/28/2015 - 11:56 | 6481860 knukles
knukles's picture

I think it's short for sodomy

https://en.wikipedia.org/wiki/Bacha_bazi

Fri, 08/28/2015 - 12:28 | 6481997 BarkingCat
BarkingCat's picture

yes, goats, sheep, camel and little boys.

 

 

 

Fri, 08/28/2015 - 18:12 | 6483231 newbie vampire
newbie vampire's picture

You left out the little girls from the slave market.

Fri, 08/28/2015 - 11:38 | 6481772 bluez
bluez's picture

The military analyst at the Moon of Alabama blog says the chances of any successful Saudi invasion of Yemen are very grim indeed. The Saudis have big desert-fight tanks, and Yemen happens to be very mountainous.

It's very possible the Saudis will be wiped out before they get 50 miles in.

Fri, 08/28/2015 - 11:57 | 6481863 Bunghole
Bunghole's picture

RT and others have been reporting for weeks they have been getting their asses kicked in ground battles.

I dont know why Tyler reports this as their first ground invasion.

Fri, 08/28/2015 - 12:59 | 6482143 Herd Redirectio...
Herd Redirection Committee's picture

IDK if this is common knowledge, but the American army was outgunned in Vietnam.  The AK 47 was a better gun for jungle warfare than the M16 was.  Its amazing how much impact conditions/environment has on successful warfare strategies!

Fri, 08/28/2015 - 11:58 | 6481870 Freddie
Freddie's picture

Moon of AL is a good blog.  Top notch stuff.

Dr. Jim Willie said months ago that USSA would pivot to Iran.  My guuess is Saudi oil fields especially Ghawar are dying fast.

Saudis were created by Lawrence of Arabia aka the Foreign Office aka Mi6 aka The Red Shield in London. They make this nice movie about Lawrence it was more color revolution and stealing of resoruces by the Red Shield.

I bet most of the Saud "royalty" are former bagel merchants from Bagdad as some people have suggested.

Fri, 08/28/2015 - 12:05 | 6481905 cro_maat
cro_maat's picture

Don't they rely on Yemeni conscripts to fill out their battalians? How will that work out?

Fri, 08/28/2015 - 18:19 | 6483250 newbie vampire
newbie vampire's picture

In the event Saudi Arabia gets its ass kicked, you can be assured Amerika will provide a surge of cannon fodder.

Fri, 08/28/2015 - 10:42 | 6481477 Jonas Parker
Jonas Parker's picture

Saudi Troops = Islamic Cub Scouts with guns...

Fri, 08/28/2015 - 11:06 | 6481589 SSRI Junkie
SSRI Junkie's picture

battle song of the saudi army

 

https://www.youtube.com/watch?v=JcNhDstL4-k

Fri, 08/28/2015 - 11:28 | 6481721 Deres
Deres's picture

This intervention is not going as planned.

Videos of saoudian tanks, armoured vehicles and helicopters being destroyed are appearing on the net.

It seems that saoudians never ever leave their armoured vehicles and are thus very vulnerable to infantry attacks even at close range.

Fri, 08/28/2015 - 12:05 | 6481908 FreedomGuy
FreedomGuy's picture

No Arab country fields a competent Army. They do better with gangs based on tribalism or ideology. The Saudi's have an army. The Yemeni, ISIS and Libya have gangs. In the Middle East, Arab gangs beat Arab armies. Arab armies beat civilians. That is the pecking order. 

Fri, 08/28/2015 - 12:19 | 6481964 Freddie
Freddie's picture

This is why they fear Iran (Persians) and Hezbollah (mostly Persians).

Fri, 08/28/2015 - 12:08 | 6481924 Freddie
Freddie's picture

Got any links to those pics?  Maybe the Saudi "army" mostly made up of Yemeni tribesmen will wak up and turn on the House of Saud.

Fri, 08/28/2015 - 13:18 | 6482230 Stumpy4516
Stumpy4516's picture

Response to froze25 who wrote:  "The so called Saudi Royal's days are numbered"

What from this story makes you say that?  The rebels have put up video's of taking out some tanks, a few tanks.  But the Saudi's are taking ground.

The price of oil is going up.  Is that why Putin agreed to the sanctions against the rebels in Yemen and the naval blockade?  The only country that is helping the rebels is Iran.  Russia wants the conflict to drag on and does not want the rebels to win.  Just look at Putin's actions.

And when needed the zionist will unleash the US air power in support of the Saudi's.  The fact that it has not occured yet is a sign the rebels are losing ground. (Or perhaps the zionist want the Saudi's to use up their excess military equipment so they buy more.  And to use up their financial surplus.)

While I would love for the House of Saud to fall I see no sign of that in Yemen at this time.

Fri, 08/28/2015 - 14:27 | 6482585 nosam
nosam's picture

The very fact that the Saudis are fighting an unwinnable war means that they have been set up to fail. Sure they are gaining ground in the same way the US gained ground in Iraq. "Mission accomplished" and all that.

This is the quickest way to empty the Saudi treasury.

Fri, 08/28/2015 - 18:27 | 6483265 newbie vampire
newbie vampire's picture

If the Saudis get bogged down in a Vietnam type situation, they will fall.  They don't have a printing press and their own natives get feisty when they don't get their welfare checks.

Fri, 08/28/2015 - 10:34 | 6481430 Dr. Engali
Dr. Engali's picture

Finally higher oil prices! I feel better.

Fri, 08/28/2015 - 10:35 | 6481438 SHEEPFUKKER
SHEEPFUKKER's picture

The great recovery is back on!!

Fri, 08/28/2015 - 10:46 | 6481495 Unknown Poster
Unknown Poster's picture

A rate increase will cool this overheating economy for sure.

Fri, 08/28/2015 - 12:35 | 6482030 CheapBastard
CheapBastard's picture

When gas doubles in price I'll feel more comfortable driving all over.

Fri, 08/28/2015 - 18:30 | 6483271 newbie vampire
newbie vampire's picture

First rate increase will probably take place in 2106.  We won't be around to see it.

Fri, 08/28/2015 - 10:48 | 6481503 Bill of Rights
Bill of Rights's picture

Should it matter? gas prices never really fell much lol

Fri, 08/28/2015 - 10:52 | 6481518 Dr. Engali
Dr. Engali's picture

Exactly, now gas prices can finally go up to reach new highs...... I can't fucking wait to get screwed over. It's good for Merika..... or so I'm told. 

Fri, 08/28/2015 - 10:59 | 6481550 MachoMan
MachoMan's picture

Not sure what you guys are talking about, we had sub $2 gas here this week in Arkansas.

Fri, 08/28/2015 - 11:04 | 6481573 Dr. Engali
Dr. Engali's picture

$3.00 a gal here in Indiana and no gas tax hikes in years.

Fri, 08/28/2015 - 12:35 | 6482031 Marty Jannetty ...
Marty Jannetty Dropkick's picture

BP's whiting refinery was out. Largest in Mid West. 

Fri, 08/28/2015 - 11:47 | 6481814 ceilidh_trail
ceilidh_trail's picture

$2.50-2.79 in Cincinnatti area this week.

Fri, 08/28/2015 - 12:42 | 6482069 BarkingCat
BarkingCat's picture

It is over $3 in the socialist paradise of Seattle.

If they could run cars on gay pride we could drive for free here.

Fri, 08/28/2015 - 13:05 | 6482164 Pure Evil
Pure Evil's picture

If someone's car runs on gay pride doesn't that turn the car gay as well?

Better watch out for any car seat springs poppin' up while driving over the rainbow.

Fri, 08/28/2015 - 10:49 | 6481431 hedgeless_horseman
hedgeless_horseman's picture

 

 

Rest assured that with the backing of the United States military, this invasion of a foreign nation is soon to be another victory for our brutal, non-democratic, in-bred, head-lopping, dictatorship, allies on the other side of the world, The Kingdom of Saudi Arabia! 

In similar news, how dare those Russians even think about arming the Russian-speaking freedom-fighters battling our coup-installed puppet-oligarchy in Eastern Ukraine, right on the border with Russia.  More sanctions for Russia?

Fri, 08/28/2015 - 10:52 | 6481524 SmallerGovNow2
SmallerGovNow2's picture

Russia has taken in more than a million refugee's from Eastern Ukraine.  The dislocation of peoples as a result of US interventionist policies there, in the ME, and NA is at epic proportions...

Fri, 08/28/2015 - 11:54 | 6481849 Son of Loki
Son of Loki's picture

Competition and survival in the EU is becoming fierce due to the millions of MENA migrants, refugees, whatevers flooding into their countries. Brussels is now more dangerous then Bahgdaddy and Marsailles is worse then many parts of Somalia. Oh yeah, the embassies in Geneva are still warning their people NOT to go out after sunset.

Fri, 08/28/2015 - 12:39 | 6482055 Freddie
Freddie's picture

Minnesota and Maine are also Somali strongholds thanks to the Z-State Department.

Russian Kornet anti-tank missiles taking out UAE MRAPs in Yemen.

https://www.youtube.com/watch?v=dxnRSY_DPVs

Check out at .27 seconds the Kornet flying about a mile through a canyon right on target.  This is a small damn target at that distance.  Kornet is major bad ass.

Kudos to Moon of AL for links to footage.

http://www.moonofalabama.org/

Supposedly 4 Apaches on teh Saudi side have been shot down. Good video on how to take out MRAPs.

Fri, 08/28/2015 - 23:20 | 6483920 StychoKiller
StychoKiller's picture

Nonsense!  A little paint and Bondo™ will fix that right up! :>D

Fri, 08/28/2015 - 18:40 | 6483292 newbie vampire
newbie vampire's picture

Tsk tsk tsk What is the world coming to ............... when we feel uncomfortable with the presence of the followers of the religion of peace.

Relax....chill out, have a six pack of non-alcoholic beer, all we need is for the imposition of Sharia law and everything will be fine and dandy.

Fri, 08/28/2015 - 12:24 | 6481978 Jethro
Jethro's picture

The Saudi Aide's face...LOL!!!! "The Kenyan wants to suck the King's what???"

Fri, 08/28/2015 - 10:37 | 6481443 cowdiddly
cowdiddly's picture

Funny how this is important now, as the Sauds have been in Yemen for months now.

Fri, 08/28/2015 - 10:37 | 6481447 wrs1
wrs1's picture

You short oil?

Fri, 08/28/2015 - 10:43 | 6481454 cowdiddly
cowdiddly's picture

No, Not touching w/10ft pole, either direction- Iran thingy to iffy

Fri, 08/28/2015 - 10:55 | 6481534 ThroxxOfVron
ThroxxOfVron's picture

I know someone who is short via a massive options trade.

They were deep in the money -last week- and talking about taking a year off to get a hip replacement and go on a long vacation.

I think they are probably going to need a new valve and a night job if they didn't cover that trade.

Fri, 08/28/2015 - 11:17 | 6481650 BurningFuld
BurningFuld's picture

That's gonna leave a mark.

Fri, 08/28/2015 - 12:13 | 6481947 U4 eee aaa
U4 eee aaa's picture

Not a lot of sympathy. The only zero hedge people should be dealing with in these markets are this website

Fri, 08/28/2015 - 12:18 | 6481963 outlaw.guru
outlaw.guru's picture

I'm long for the last 5 days. It's awkward how people being killed thousands of kms away from me are making me money. Doesn't seem moral, but keep on Alah's work guys cuz daddy needs a brand new bag.

Fri, 08/28/2015 - 10:37 | 6481445 wrs1
wrs1's picture

Tought Titty for oil shorts................

 

Told you guys oil had the best upside with the GOR at such a high level.

Fri, 08/28/2015 - 10:44 | 6481488 saints51
saints51's picture

so you want profits from your 5 quart a day oil well and are happy to see people die for your bank account. You have some serious karma coming.

Fri, 08/28/2015 - 10:49 | 6481505 wrs1
wrs1's picture

LOL!  My shale wells produce over 50,000 bbl/mo of LTO and 150mmcf gas, that is where the money is.  As to people dying, they were fighting this bullshit the whole time oil was dropping.  The Saudis bit off more than they could chew.  I think you have some sour grapes, my karma is great.

Fri, 08/28/2015 - 10:50 | 6481511 saints51
saints51's picture

You are lying again little boy.

Fri, 08/28/2015 - 11:39 | 6481553 wrs1
wrs1's picture

About what?  This?

 

They haven't posted the State Barlow 47x38 production yet but it was 20,000 bbl.

http://tinyurl.com/p2xghsp

http://tinyurl.com/q29pfr9

Fri, 08/28/2015 - 13:16 | 6482220 wendigo
wendigo's picture

I very much doubt you own oil wells that produce 50k barrels a month. Seems unlikely. But let's say you're telling the truth. 

 

You mention it's shale oil. Are all those barrels profitable at $45, or are you burning through cash in a desperate attempt to stay afloat? 

Fri, 08/28/2015 - 10:38 | 6481455 Jethro
Jethro's picture

Wait until the Iranians figure out that they can spike the oil prices by fucking around in the Straights of Hormuz and the Gulf of Aden (they are in Yemen supplying the Houthis anyways).

Fri, 08/28/2015 - 10:44 | 6481484 Mr. Bones
Mr. Bones's picture

They know that. They also know that they can only actively keep it closed for a day or two before a multinational force pushes their shit in. After that it's passive resistance with jetsam.

Best case scenario, they manage a week maybe a little more before they run out of food and the riots start.

It's simply not in their best interest to close the strait for funsies.

Fri, 08/28/2015 - 10:56 | 6481538 HowdyDoody
HowdyDoody's picture

The rise in insurance rates will stop all traffic. If it becomes a war zone, then all bets are off.

Fri, 08/28/2015 - 10:57 | 6481539 Jethro
Jethro's picture

I really want to see them try it though. I'd like to see the resulting Youtube videos of some Iranian flying boats get vaporized by phalanx. "ALOHA SNACKBAR! BRRRRRRRRRRRRRRRRRRR! POOF!"

Fri, 08/28/2015 - 10:55 | 6481531 wrs1
wrs1's picture

They know that but that's risky business because it brings in the US and this proxy war stuff is plenty enough to keep the Saudi's busy.  I don't know if it was reported here but the Houthis successfully launched a Scud at the Saudi electric plant in Jizan from outside Saana a couple of days ago.  The Saudis intercepted the Scud but blowing up a Saudi electric plant would really fuck up their ability to maintain high export levels.

Fri, 08/28/2015 - 11:07 | 6481586 Bankster Kibble
Bankster Kibble's picture

If the US sends ships back into the Persian Gulf, that will support higher oil prices.  Get the Iranians to make threatening moves toward the Strait of Hormuz (they don't actually have to DO anything) and watch those Exxon options soar.

Fri, 08/28/2015 - 13:20 | 6482236 Jethro
Jethro's picture

The Houthis popped the top off a Saudi tank recently too. Now we know that they have ATGMs, my guess is Iranian. I was wondering if the Iranians noticed all the Saudi armor rolling in without reactive armor.
https://www.youtube.com/watch?v=S0nDHV_mkiY

Fri, 08/28/2015 - 13:37 | 6482303 Freddie
Freddie's picture

It took out that M1 Abrams like a sardine can.  The video comments debate whether it is Kornet or Iranian copy or otlder ATGM.  Shot in low like too at dusk.

May be a Konkurs ATGM also known as the NATO name AT-5 Spandrel made by Tula.  the same Tula you can buy cheap ammo from like .223 at Wal Mart.

https://en.wikipedia.org/wiki/9M113_Konkurs

All good because more useless M1 will be sold by Gen Dynamic aka Crown-Krinsky crime family.

http://www.abeldanger.net/2014/04/crown-crime-family-of-chicago.html

Go to Phoenix-Scotsdale and see blocks and blocks of  General Dynamics factories which is why Mccain gets reelected.  Crown-Krinskies also involved with Obola, LBJ and whacking JFK and RFK.

Fri, 08/28/2015 - 12:09 | 6481932 ceilidh_trail
ceilidh_trail's picture

You mean this?-  http://alert5.com/2015/08/27/video-shows-saudi-patriot-missiles-intercep...      Also, congrats on your lease income!

Fri, 08/28/2015 - 13:22 | 6482251 man of Wool
man of Wool's picture

It would suit both sides if the price spiked for a while.

Fri, 08/28/2015 - 10:40 | 6481465 Glass Seagull
Glass Seagull's picture

 

 

De-risking

Fri, 08/28/2015 - 10:40 | 6481467 Chuck Knoblauch
Chuck Knoblauch's picture

Neither country existed before WW I.

Call me when they invade Shiite territory.

Fri, 08/28/2015 - 11:12 | 6481620 Mikeincinci
Mikeincinci's picture

Ring. Ring.

They are fighting Shias now in Yemen.

Fri, 08/28/2015 - 10:49 | 6481507 Mr Blonde
Mr Blonde's picture

The House of Saud's days are as close to being numbered as the Ayatollah is about completely doing away with their nuclear program. As long as DC props up Riyadh militarily, along with Saudi's massive oil reserves, the minority Shi'a in Saudi, let alone Yemen don't stand a chance.

Fri, 08/28/2015 - 13:41 | 6482348 Freddie
Freddie's picture

The Saudi oil fields may be rapdily dying.  this is why the USSA is pivoting towards Iran,  Always about $$$$.  Iran has pumped minor amounts of oil since the shah.  Saudi is almost pumped out.

Fri, 08/28/2015 - 10:52 | 6481519 Possible Impact
Possible Impact's picture

Maybe the other way around?

Yemen invades Saudi Arabia

https://twitter.com/Conflicts/status/637175512864026624

Conflict News ‏@Conflicts 7h hours ago
Al-Amoud military checkpoint
 in #Jizan province of #Saudi Arabia
blown up by #Yemeni army
- @IraqiSuryani1

Fri, 08/28/2015 - 10:52 | 6481520 ThroxxOfVron
ThroxxOfVron's picture

But...but...but Saddam Hussein invaded Kuwait

 

Fri, 08/28/2015 - 11:03 | 6481571 Bankster Kibble
Bankster Kibble's picture

No no no, it was Russia invading Ukraine!  Er, a very DRY part of Ukraine.  And flat.  Er . . .

 

Time for more sanctions for somebody, I'm sure.

Fri, 08/28/2015 - 10:54 | 6481528 Dr. Engali
Dr. Engali's picture

Nice tanks. Wonder where they got them.

Fri, 08/28/2015 - 10:58 | 6481544 ThroxxOfVron
ThroxxOfVron's picture

"Nice tanks. Wonder where they got them. "

Yeah.

Ya think the uniforms and kit were made in China?

 

Anyway...  I'm pretty sure I know who paid for it all...

Fri, 08/28/2015 - 11:02 | 6481566 clade7
clade7's picture

"If our forces are on your soil, were taking all your goddamn oil!"  Go Trump!

Chant:

"10cents a gallon, 10 cents a gallon!"

 

(thats how you win a fuckin election me buckos!)

Fri, 08/28/2015 - 11:14 | 6481629 ThroxxOfVron
ThroxxOfVron's picture

SO, Trump is basically serving up a campaign sound bite variation of the Bush/Cheney cabal lie that "Iraq oil sales are going to pay for the 'liberation'." ?

Fri, 08/28/2015 - 11:20 | 6481672 SmallerGovNow2
SmallerGovNow2's picture

when i was there circa mid 90's they has warehouses full of US made M-1 tanks ...

Fri, 08/28/2015 - 11:47 | 6481817 Deres
Deres's picture

In fact, the video shows emiratis troops and anot saudis.

They are equipped whith french leclecrc MBT (some with urban combat kits and add-on armour) and BMP-3 russian IFV.

Fri, 08/28/2015 - 11:07 | 6481595 silverer
silverer's picture

WAR!  That'll solve the problem.  Oops!  Now we have to pay for the war.  Wash, rinse, repeat.

Fri, 08/28/2015 - 11:08 | 6481600 Thirtyseven
Thirtyseven's picture

When does anyone invade Israel: the world's foremost state sponsor of terror?

Fri, 08/28/2015 - 11:43 | 6481800 Thirtyseven
Thirtyseven's picture

Always Remember: the Mossad did 9/11.

Fri, 08/28/2015 - 11:12 | 6481617 darteaus
darteaus's picture

Political Law:  When facing poor domestic economic/political conditions, create a foreign enemy and engage in, at a minimum, a rhetorical campaign.  If domestic conditions worsen, crank up the rhetoric or engage in "limited" military action.

- Corrolary:  To see which countries have leaders in domestic economie/political trouble, look for the countries engaging in "limited" military action.

Fri, 08/28/2015 - 11:12 | 6481619 Government need...
Government needs you to pay taxes's picture

Nothing like a little war to boost oil prices . . . and the US military corporacrisy.

Fri, 08/28/2015 - 11:13 | 6481622 SmallerGovNow2
SmallerGovNow2's picture

Oil and gold patterns/charts looking very similar this morning...

Fri, 08/28/2015 - 11:16 | 6481641 falak pema
falak pema's picture

There you are ; war is inflation and Dow can now head to 2500 !

Fri, 08/28/2015 - 11:23 | 6481677 Able Ape
Able Ape's picture

In a sane world you would have headlines such as: "BLANK_Army disbands, men prefer drinking, sports and making love rather than getting shot, killed, losing limbs, and losing their minds and getting cloth ribbons and cheap medals for their troubles and losses."...

Fri, 08/28/2015 - 12:47 | 6482083 SmittyinLA
SmittyinLA's picture

*sane world with media not controlled by the state

 

there fixed it 

Fri, 08/28/2015 - 11:27 | 6481717 LostWages
LostWages's picture

These fuckers have been killing each other off for thousands of years.  Sunni, Shiite, Kurds, etc.  The only time they stop fighting each other is when they have a common enemy, the US and Isarael.  "The enemy of my enemy is my friend." 

 

When are we going to learn to stay out of there and let them do each other in?  No, we try to force the lions to get along with the zebras. Will never work.

 

Sat, 08/29/2015 - 10:31 | 6484498 BarkingCat
BarkingCat's picture

Sunni and Shiite have been around for thousands of years??

Are Kurds a religious group???

 

I am so confused

Fri, 08/28/2015 - 11:33 | 6481749 Atomizer
Atomizer's picture

Let's create a anomaly of global usage to create fake demands. 

Fri, 08/28/2015 - 11:34 | 6481755 rwe2late
rwe2late's picture

 The US will surely demand economic sanctions against Saudi Arabia

in such a case of naked cross-border aggression !

...

oh, ...  never mind.

Fri, 08/28/2015 - 11:48 | 6481818 roadhazard
roadhazard's picture

  "Trouble in the Mid East" =  Time tested oil play.

Fri, 08/28/2015 - 11:48 | 6481819 NubianSundance
NubianSundance's picture

I thought SA had already invaded Yemen some weeks back and were getting bogged down after initial gains.

Fri, 08/28/2015 - 11:49 | 6481823 blabam
blabam's picture

It's Allah Akbar time again! 

Fri, 08/28/2015 - 12:02 | 6481884 Smegley Wanxalot
Smegley Wanxalot's picture

Couldn't you Saudis wait till tomorrow?  I need to fill up on the way home tonight.  The fucking stations tick up a dime every time a camel farts in the middle east - a war will tick it up a quarter or so.

Fri, 08/28/2015 - 12:06 | 6481911 BeerMe
BeerMe's picture

Damn.  I knew I should have bought when crude was below $40.

Fri, 08/28/2015 - 12:09 | 6481929 invest3
invest3's picture

Barry-Kerry needs to send in Al Qaeda or ISIS or ISIL or IS or whatever...

Sat, 08/29/2015 - 10:35 | 6484510 BarkingCat
BarkingCat's picture

They got confused and have sent the orders to Right Sector.

Right Sector is trying to obey and so they keep searching the Ukrainian map but just cannot find the towns of Camel Far and Akhar Snackbar.

Fri, 08/28/2015 - 12:10 | 6481935 AlfredNeumann
AlfredNeumann's picture

Yeah, Dafne Schippers

Gold medal in womens 200 Meter final today.

Hup,Holland, Hup

https://www.youtube.com/watch?v=oLIOlxZdXD0

Fri, 08/28/2015 - 12:54 | 6482120 Freddie
Freddie's picture

She is pretty hot too.

Fri, 08/28/2015 - 12:11 | 6481941 jjsilver
jjsilver's picture

Who do you think was on the right side of that trade?

Fri, 08/28/2015 - 12:21 | 6481970 Baby Eating Dingo22
Baby Eating Dingo22's picture

You sure they're Saudi troops and not laid off N.Dakotans?

Fri, 08/28/2015 - 12:24 | 6481977 European American
European American's picture

Need to make more money, Need to make more money. A trillion isn't enough. A trilion isn't enough. The Zionist NSA/CIA writes up another script, arm and pay locals. Oil prices head back up. War is our business and business is good.

Fri, 08/28/2015 - 12:45 | 6482077 SmittyinLA
SmittyinLA's picture

I am unfamiliar with Saudi warrior culture, who fights first? The eldest sons or the youngest?

BTW in warfare experience kills as much as speed.  

Fri, 08/28/2015 - 13:25 | 6482258 Herd Redirectio...
Herd Redirection Committee's picture

Haha, good one!

Camels, BMWs, Lear Jets, back to Camels.

Fri, 08/28/2015 - 12:45 | 6482079 AlfredNeumann
AlfredNeumann's picture

The raghead sandniggers of Saudi are America's buddies.  They behead people daily, women can't drive and have to wear full Burkhas.

And yet Iran, where women drive, run businesses and are in govt is the supposed enemy

Fri, 08/28/2015 - 13:03 | 6482152 Arthur Schopenhauer
Arthur Schopenhauer's picture

I don't know what kinda sandniggers they are but they got some big ass guns.

https://youtu.be/juV1F2hq-pM?t=17s

Fri, 08/28/2015 - 13:25 | 6482261 DaVinci
DaVinci's picture

Just like the racist wannabe sand-nigger Jews are killing Palestinians, stealing their land and yet America finances their Apartheid operation to the tune of over 5 Billion a year. At least the Saudis don't ask us for money.

Fri, 08/28/2015 - 12:48 | 6482086 Pasadena Phil
Pasadena Phil's picture

So..... What happened to the "oil glut"? There IS no oil glut! Someone must have asked for delivery on their paper contracts. The same will happen to gold once all of those 123 out of 124 gold "owners" start demanding delivery on those contracts.

Sat, 08/29/2015 - 10:45 | 6484534 BarkingCat
BarkingCat's picture

Unfortunately the gold contracts can be settled in paper... I believe that is in the actual contract and there is already legal precedent for it as well.

Too bad. I would love to see these naked contract writer having to be forced to buy physical to deliver..

Fri, 08/28/2015 - 13:09 | 6482189 Wahooo
Wahooo's picture

Let's see ... Increase production as a prelude to war so that when war comes the price increase won't throw the world into depression. Given the massive price reduction in oil, the war they planned must be huge.

Fri, 08/28/2015 - 13:11 | 6482198 john milton
john milton's picture

i dont care about the tanks but how in the hell are we still on red??? seems like this really was a dead cat jump.. should be over 18 000 by now to have some credibility.. paging ppt----> vix slam god dammit

Fri, 08/28/2015 - 13:21 | 6482239 DaVinci
DaVinci's picture

Wow! The Saudis have just morphed into IsraHellis.

Fri, 08/28/2015 - 13:25 | 6482263 Zwelgje
Zwelgje's picture

Just?

Sat, 08/29/2015 - 02:25 | 6484107 Really20
Really20's picture

The House of Saud has been like this ever since it was founding. The US imperialist government, naturally, found kindred spirits among those thieves and bandits. They are no "royal family", they own the country and work hand in hand with the business classes (who, often, have married into the House of Saud) and the Ulama to prop up their rule.

The sooner these dictatorial "Al Saud and the 3,000 Thieves" are deposed, the better for the world it will be. SA is a blot on the world, sytmying the development of clean energy and using its oil money to purchase Western investments to secure its wealth in perpetuity. This wealth goes then to fund terrorists who go hand in glove with the military-industrial complex of the US. It's a vicious cycle of pain, misery, and suffering for most, and profit for a few.

Fri, 08/28/2015 - 13:47 | 6482379 Hans-Zandvliet
Hans-Zandvliet's picture

Talking about Iran joining the fray, Paul Craig Roberts has an illuminating geopolitical take on this, in this radio interview:

http://usawatchdog.com/middle-east-revolution-inflationary-depression-coming-paul-craig-roberts/

Here's a spoiler: he argues that the US uses Saudi Arabia as their proxy to provoke Iran to come to the rescue of Yemen. Then the Neocon hawks have their pretext to torpedo Obama's Iran-deal and start a war with Iran.

By the way, I don't understand why Yemen should influence the global oil price at all. Yemen started producing oil in the late 1980s. They reached their peak of 440,000 barrels/day in 2001 (maybe stunted by the start of the US wars after the 9/11 'attack', I mean false flag operation) and they are now down to 133,000 bl/day. That's just a drop in the ocean, compared to the real oil producers of the Persian Gulf Region. Can anyone explain why Yemen should have any influence at all on the global oil price?

Fri, 08/28/2015 - 13:53 | 6482399 Jack Burton
Jack Burton's picture

Here is what a Saudi Tank, Abrams, looks like when hit by a Soviet Union built 1970's anti tank guided missile. Video is a couple days old. A number of Saudi Abrams tanks have been destroyed with these old Soviet weapons. I don't need to tell you what a modern Russian anti tank guided missile can do. Israel found out in Lebanon, and those missiles too we over 2 decades old. Watch!

https://www.youtube.com/watch?v=a2GR-g9777k

Fri, 08/28/2015 - 15:22 | 6482806 lakecity55
lakecity55's picture

Well, it looks like they have a lot of tanks.

Fri, 08/28/2015 - 13:54 | 6482407 I AM SULLY
I AM SULLY's picture

This is great news!

(for Satan)

Fri, 08/28/2015 - 13:55 | 6482411 Hannah S
Hannah S's picture

Where have you been?

Military action by the Saudis in Yemen - in partnership with other countries - has been going on for MONTHS.

Fri, 08/28/2015 - 13:58 | 6482433 Jack Burton
Jack Burton's picture

Notice the extreme range a accuracy of the guided anto tank missile. In this case Saudi tanks on a hill road, next to a Saudi fortification. Being guided, the missile can hit at these ranges. Saudi Arabis naturally does not admit any tank losses, that is why Yemeni fighters video each attack and post it.

https://www.youtube.com/watch?v=dxnRSY_DPVs

Fri, 08/28/2015 - 14:15 | 6482518 wizteknet
wizteknet's picture

The spike had something to do with Nigeria, forgot what it was.

Fri, 08/28/2015 - 15:08 | 6482748 Atomizer
Atomizer's picture

Niger Delta ponzi speculation plot to drive cost to Wallstreet levels. If you picked pocket Wallstreet by confusing the HFT bots, it would be considered a crime. Getting high oil prices requires similar means to cheat. Isn't that right, Lloyd Blankenstein?

1 - The Winning of The Carbon War

DOCUMENTARY: BATTLING OIL THEFT IN THE ...

 

Fri, 08/28/2015 - 15:08 | 6482752 Jackagain
Jackagain's picture

Yemen is the Poland of the M.E...

https://www.youtube.com/watch?v=G-dMM3HRnhY

Fri, 08/28/2015 - 17:28 | 6483152 Flying Wombat
Flying Wombat's picture

More context and fantastic read:

Total War In Yemen Totally Ignored By Western Media

TND Guest Contributor: Tony Cartalucci |

With almost a whimper, the Western media reported that the US-backed regimes of Saudi Arabia, the United Arab Emirates (UAE), and their auxiliary fighters drawn from Al Qaeda have begun carrying out what is the ground invasion of Yemen. Along with an ongoing naval blockade and months of bombing raids, the ground invasion adds a lethal new dimension to the conflict – for both sides.

Landing at the port city of Aden on Yemen’s southern tip, it is reported that an “armor brigade” consisting of between 1,000 – 3,000 troops primarily from the UAE are now moving north, their ultimate destination Sana’a, the capital of Yemen.

Columns of the UAE’s French-built Leclerc main battle tanks were seen moving out of the port city though their numbers are difficult to establish. Reports claiming that the UAE unit is brigade-sized might indicate as many as 100 tanks involved – a third of the UAE’s total armored force.

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http://thenewsdoctors.com/?p=498019

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