Saudi Arabia

The oil patch is full of conundra currently... crude price declines globally to near 2009 lows but supertanker day-rates (demand) soaring over $100,000 for the first time since 2008. However, today's news that Saudi Arabia is slashing its price (to a $3.20 discount to the bechmark with the largest price cut since 2012) suggests in an effort to shore up tumbling reserves and capture more market share amid dwindling demand (and excess supply) - a price war has begun led by US ally Saudi Arabia... and China is hording crude at these low-low prices.

BIS Warns of ‘Major Faultlines' In Global Debt Bubble - "Unrealistic and dangerous to expect that monetary policy can cure all the global economy’s ills"

"The Russian intervention is a massive setback for those states backing the opposition, particularly within the region – Qatar, Saudi Arabia and Turkey – and is likely to elicit a strong response in terms of a counter-escalation."

The following would be funny, if it weren’t so incredibly sad. The United Nations’ spiral into clownish insignificance continues unabated.

"I know there is a major battle upon us and everything needed for this battle will be made available"... 

On Monday, a missile from a Saudi-led airstrike struck a Yemeni wedding reception in the village of Al-Wahijah, located near the Red Sea. The explosion resulted in 131 deaths, and the incident is being labeled as one of the deadliest attacks on civilians during the six-month conflict. In total, there have been 7,217 civilian casualties, including 2,355 killed and 4,862 wounded in the six months since the fighting began, according to the United Nations.

"They’re hopping mad in Saudi Arabia, the U.S. And Qatar because of their defeat and the victory of Russia and Syria and the unraveling of the fact that the U.S. and its allies are not serious about fighting Islamic State. Those who claim to be concerned about the Syrian people are the ones slaughtering the Syrian people through the terrorists."

Former Republican presidential nominee Mitt Romney smiled and repeatedly said, "Nice to see you," when asked if he had any concerns about the Saudi Arabian-led bombing campaign in Yemen.

Two years after the controversial appointment of Saudi Arabia to the U.N. Human Rights Council, leaked diplomatic cables have revealed the U.K. was a key player in the election of the Gulf State - despite the Saudis’ appalling human rights record. What is surprising is the next chapter in the farcical saga...

Those paying close attention to the geopolitical chess game unfolding in the Middle East might have noticed a rather amusing contradiction in Riyadh’s foreign policy stance of late...

As the regional proxy wars heat up, Saudi Arabia seizes an Iranian "fishing" vessel that, in addition to fishing poles and tackle boxes, also happened to be carrying missile launchers, anti-tank weapons, and firing guiding systems likely bound for the Houthis in Yemen.

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• Glencore Extends Rebound as Turmoil Shows Signs of Easing (BBG)
• Putin wins parliamentary backing for air strikes in Syria (Reuters)
• China Cuts Minimum Home Down Payment for First-Time Buyers (BBG)
• German Unemployment Unexpectedly Rises in Sign of Economic Risks (BBG)
• Japan Industrial Output Slide Hints at Recession (WSJ)