Never one to shy away from controversy, infamous director Oliver Stone (see here, here, and here) is once again challenging the mainstream media's narrative; this time with regard the "russian hacking and leak of the DNC." Speaking with CNN's Christine Amanpour, the Hollywood director said he believes the Democratic National Committee email hacking scandal was an "inside job...to disguise what’s really going on..."
While the US relationship with Saudi Arabia can be described, perhaps courtesy of the latter's donations to the Clinton campaign, as one of preferential treatment when it comes to arms deals, the relationship with Israel is even simpler. As Reuters reports, the US and Israel reached an agreement on a record new package of at least $38 billion in U.S. military aid to be supplied to Israel over the next decade.
Earlier today the IEA revealed a much more pessimistic outlook on the state of the oil market, predicting that a sharp slowdown in global oil demand growth, coupled with ballooning inventories and rising supply means the crude market will be oversupplied into late 2017. The reason: a "dramatic deceleration in China and India” this quarter coupled with “vanishing growth” in developed economies.
Given the Obama administration's (and Hillary's campaign financing) vehment dissent over The House and The Senate's unequivocal confirmation of a bill allowing 9/11 victims' families to sue Saudi Arabia, the mainstream media has been unleashed to change the narrative. First, CNN's Wolf Blitzer explained the bill could create economic collapse in America; and now Bloomberg's Editorial Board suggest it will "allow anti-American sentiment to flourish," potentially expose state secrets and "potential monetary costs," and "leave the U.S. vulnerable to on the global stage."
Two days before the 15 year anniversary of the September 11 attack, moments ago the House unanimously passed - to thunderous applause - legislation allowing the families of 9/11 victims to sue Saudi Arabia in U.S. courts, The bill, which passed the Senate unanimously in May, now heads to President Obama’s desk. And that's where things get tricky for Obama.
Of the four scenarios that we laid out yesterday, it appears "exemptions" or "no deal" are now the only ones left on the table for Algiers - neither of which are good for oil prices. As Bloomberg reports, Iran, Libya, and Nigeria have demanded the right to increase production - a solution that makes a Saudi agreement to 'freeze' less likely and a "no deal" reaction in Algiers more likely.
European stocks, Asian shares and U.S. equity index futures decline. Selloff in global stocks and bonds deepened after signs central banks in Europe and Japan are starting to question the benefits of further monetary easing. North Korea nuclear test weakens the won.
After two years of a Saudi-led strategy of all-out pumping, adopted to protect market share against the surge in U.S. shale oil, OPECand Russia are putting cooperation back on the table. As Bloomberg notes, their last attempt to do this - a proposal to freeze output in April - collapsed in acrimonybecause of rivalry between Saudi Arabia and Iran. There may be four potential outcomes from the Algiers talks.
Following last night's API-reported 12mm barrel drawdown (the most since 1999) - attributed to last week's Gulf shut-ins due to tropical storm Hermine - EIA reported an even bigger 14.5 million barrel draw. Production fell for the 3rd week and Distillates saw a big inventory build but the headline crude build dominated algos which spiked WTI above $47.
The DOJ is considering whether to void a previously signed "deferred-prosecution agreement" with HSBC on claims it didn't comply with terms of the agreement. Voiding the agreement would open the bank up to criminal charges in the U.S.