Tag Archives: Brent Crude Oil

December 14, 2023 · 19:52

Our menu: Delusional stew for all.

Yup, a meal that is free of charge, but that is how it feels to me (and I am hungry). This has started some time ago for me and the blablabla is nice, but it distracts me. On the up hand I came up with the pilot of yet another TV series, but I have enough at present. You see, what set me off today (off being a big word), was ‘No ‘phase-out’, but Dubai deal puts oil and gas sector on notice’ (at https://www.climatechangenews.com/2023/12/13/no-phase-out-but-dubai-deal-puts-oil-and-gas-sector-on-notice/), you think it is delusional, think again. We are also given “The “UAE consensus” did not go so far as to call for a “phase-out” as more than a hundred countries wanted. It settled on “transitioning away from fossil fuels in energy systems”.” You want to see how delusional this is? Lets take a look. In the first OPEC removes their delivery by 1,000,000 barrels of oil per day, they keep on producing for China, but the West (USA, Canada, UK, EU) get that less per day, this is not phasing out, but it is moving that way. Now consider that impact

USA 450,000 bpd less, Canada 100,000, United Kingdom 100,000 an the EU loses 350,00 bpd. I give it less than 60 days before all hell breaks lose. Brent will export less than 5% as all goes to America and with that change America collapses broke in 60 days, Canada will lose most of its shit, UK will become too expensive to live and the EU breaks down on its own issues. 60 days is all that is required for chaos to unfold in the west. That is what you are celebrating, aren’t you?

I am not against diminishing oil, but at present it isn’t realistic. Alternative solutions were stopped for the longest of times and the funny part here, when that comes back the crows will shout All hail Musk. That is the reality. You see, the internet without powers is not a nice thing and that makes the Musk solution the only internet on the planet. With that much less oil fuel prices will double and with proper isolation (example London), the people will freeze to death. I am game for all that, are you?

You see, the second part is “One delegation not joining in the ovation was Saudi Arabia. Oil-exporting states fought hard against the phase-out language that appeared in earlier drafts.” This makes sense, but what does not is that EVERYONE steered clear from the noise by Brent crude oil, the one American supplier to hundreds of nations and that stops soon after the limitations are reached. And with that all on the table you see that Crude becomes nationalistic and the rest suffers and drowns (or chokes) on a lack of oil.

All these people, all collectively talking on what needs to be done and nothing is being done. I saw it before COP26 and with the animosity against Elon Musk, the one solution holder this merely goes from bad to worse. I reckon that he has his solutions in place in has house and that people like Bill Gates have similar solutions in place. As such when this goes south really far, we have America and about 2000 houses with power. The rest? I think it was the Roman senate who said in unity ‘fuck the poor’ and that will be a simple repetition.

As such when we get to “Samoa complained they were not yet in the room when the deal was adopted. Small island states had pleaded for a rapid fossil fuel phase-out to hold global warming to 1.5C, seen as critical for their survival.” Their is your first example of the world screwing over the poor. So why were they not in the room? Anyone? Anyone?

I already stated that this point would be broken at the end of COP26, and so far my numbers hold up (partial coincidence) and that larger stage is merely fuelled by the joke that we see is presented now. Phasing out oil sounds nice, but the four players mentioned earlier cannot see the reality of that ever happening, on the upside, when America collapses, all the eyes will suddenly look at Brent oil for the first time and wonder what will happen there, because a collapsed America implies that Brent will have to export nearly all its oil making life in the USA a lot harsher. The only thing I found was by Reuters giving us “Brent crude futures edged back down towards $97 a barrel on Tuesday because (whatever reason) after two days of back-to-back speeches by world leaders, the COP28 climate” You don’t think Brent has its extensions and override policies in place? That is the reality of things and board of directors tend to be greed driven, so that was easily seen.

A stage that has a restaurant, it serves a delusional menu. It is free and you can have as much as you like.

That is what is happening and when the world settles bak in 2-3 weeks the issues start arriving on how impossible these goals really are. I reckon the ‘depending’ media already have speakers in place for that event.

Enjoy your day.

Would you believe that?

That was my very first thought when I saw (at https://www.aljazeera.com/news/2023/6/2/blinken-to-visit-saudi-arabia-to-discuss-strategic-cooperation) ‘Blinken to visit Saudi Arabia to discuss ‘strategic cooperation’’. There we are given “Blinken will “discuss US-Saudi strategic cooperation on regional and global issues and a range of bilateral issues including economic and security cooperation”, the State Department said in a statement.” I have an actual hard time believing that. You see there are a number of issues that count for the US.

1. Banking instabilities.
2. Oil prices.
3. BRICS membership.
4. Defence spendings lost.
5. Iranian diplomatic settings.
6. Syrian diplomatic settings.
7. Outstanding US bonds with the KSA.

These are just 7 issues of a whole range of problems that the US is facing ever since they burned their ally the Kingdom of Saudi Arabia. The fact that Saudi Arabia walked away from Credit Suisse is making the US rather nervous. They had this idea that when the going gets tough, the purse of Saudi Arabia is there to bail them out. That is not (or no longer) a given. The oil prices are biting the US and cheaper oil is for them essential, even though Brent Crude Oil is doing close no nothing to stop that pain. Then the new issue erupts and I mentioned this yesterday. BRICS is no longer on the sidelines. It wants the western worlds to adjust their views and they now have the muscle to do that, with Saudi Arabia added they will also have the money to do that. I personally think that Saudi Arabia will have a close ally, as such the UAE might become a member too. So now you see how the words of Italy are too little and too late (see my article 2 days ago).

Then the think I mentioned a few times, as China gets the Saudi Defence spendings, the US will come up short and that bites as well and these are the biggest issues for the US, as such Iran is hardly a blip. OK, it is more but only when the world sees that when you are broke you cannot push for economic sanctions on Iran (Russia too) and it is already selling oil to India or Pakistan (not sure who) and China, so that marble is faltering nicely. Then there is Syria and the largest issue are the outstanding bonds that the US sold. I actually do not know how many the KSA or Kingdom Holdings have, but if they flood the markets they will lose money and it will be disaster for the US, who will run out of cash long before Q3 2024. Which means they are 1-2 quarters short, or perhaps better stated at the end of their wallets they need to survive another 2 quarters. Good luck with that idea in the US.

So when we see the Al Jazeera article and many others on why Blinky Tony is going to Riyadh, I feel certain that there is a lot more going on that w are being told. And I feel certain that it is not on the media. I feel that the White House administration will never admit to this Oliver Twist moment with “Can I have some more please?” No one would admit to that, it is just a little weird to see the entire BRICS setting a day early and now we get this.

And he has more on his plate. We get that with “attend Gulf Cooperation Council (GCC) talks during his visit, starting on June 6”. I reckon that is when he will make mention of two variables (Iran and Syria). It is speculation, but that is what I (with no diplomatic knowledge) would do.

I reckon that this is one of the hardest times for the US State department ever. It did not help that it was this president who stated to make Mohammed bin Salman Al Saud a pariah. So how is that working out?

Enjoy the weekend.

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Filed under Finance, Media, Politics

Tagged as Al Jazeera, Anthony Blinken, Brent Crude Oil, BRICS, China, Defence spending, India, Iran, Italy, Kingdom Holdings, KSA, Mohammed bin Salman Al Saud, Pakistan, President Biden, Saudi Arabia, Syria, UAE, US, US Bonds, White House

October 19, 2022 · 17:29

She just doesn’t get it

OK, I have been sitting on this for a few hours. It started when I saw the article (at https://www.theguardian.com/global/2022/oct/17/senator-raises-alarm-saudis-could-share-us-defence-technology-with-russia) titled ‘Senator raises alarm Saudis could share US defense technology with Russia’, I wondered who wanted to play the daily mail card with a title like that and of course, everyone favourite political tool and least acceptable journalist Stephanie Kirchgaessner was there. The person who bashes Saudi Arabia whenever she can. So I decided to take a gander towards PROPERLY informing the people. Well, we all need a hobby, don’t we?

It starts from the very beginning. “A senior Democratic lawmaker has raised alarms about the possibility that sensitive US defense technology could be shared with Russia by Saudi Arabia in the wake of the kingdom’s recent decision to side with Moscow over the interests of the US” this is the first shovel of BS. The kingdom doesn’t side, it seeks a path that is the best for any nation, its own nation. And in continuation the US did this to themselves! So when we get in continuation “following Opec+’s decision to cut oil production, said he would “dig deeper into the risk” in discussions with the Pentagon.” OK, OPEC+ decided to cut oil production, this is the right of OPEC+. Now, we can argue if it was Russia pushing that button, which might make sense, but I did not see the papers on that meeting, so I actually do not know the exact setting there. But oil production was cut and here lies the rub. “If you want cheap oil, you do not bite the hand that feeds you that cheap oil. President Biden promised to make Crown Prince Mohamed bin Salman al Saud a pariah and he did keep his word. But it was never based on any actual facts and any factual rulings. So when this happened the Kingdom of Saudi Arabia was treated as a lessened ally. This has CONSEQUENCES! So I was pretty much howling with laughter when President Biden and Boris Johnson went like shivering little chihuahuas asking for cheap oil. OK, Boris Johnson probably took a page out of Oliver Twist and asked “please sir, can I have some more?” But both faltered and failed.

As such we now get “The decision was seen in the US capital as a sign of Riyadh siding with Russia in its war with Ukraine, and as a possible attempt to hurt Joe Biden and Democrats ahead of next month’s critical midterm election by raising the price of petrol at the pump” Now, I personally disagree with the Russia setting, but I get that some might think that. Why? Because they are missing the obvious especially some journalist who is friends with an UN essay writer named Eggy Calamari (or something like that). To see this, you merely need the use of a calculator or an Abacus. We get part of this from Robert Kaufman in Newsweek “The U.S. imports oil because consumption of oil products—about 20 million barrels per day—is greater than the quantity of crude oil it produces, about 18 million barrels per day” this is supported by the EIA (Energy Information Administration) who gives us “the United States exported about 8.54 million b/d of petroleum to 176 countries and 4 U.S. territories.” So it sells its own oil for $100 per barrel (fictive example number) whilst expecting that it can buy crude oil from the Kingdom of Saudi Arabia for $60 per barrel (also fictive example number) hence pocketing $40 per barrel in its own pocket and the Kingdom of Saudi Arabia basically says that this stopes now. The US can buy oil at the Brent Crude Oil price and the greedy people do not want that, so now they need to do with less, even though they know that they sell the bulk of their oil, leaving the US and its citizens without oil. And no one is looking at that part of the equation.

So when I saw “Both Biden and his Democratic allies in Congress have expressed frustration with the move and called for a realignment in the Saudi relationship, with the US president warning that Saudi would face “consequences” for the move”, my living room just filled with laughter. What consequences? The KSA can watch the US implode upon itself and it better realises that there is also a consequence to it selling its oil. You stopped treating the KSA (Kingdom of Saudi Arabia) as an ally years ago, you wasted time by censoring too much of the actions by Iran on the KSA and Iran’s actions in Yemen. All this was enough to stop the pumps and Russia would not have been a factor. It is my personal speculation that the KSA is keeping a distance between them and Russia, too close ties might make them lose a lot more friends and the KSA would be left with Russia, Lithuania and North Korea, two nations it does not care about for one inch. And that was all visible, but the wannabe journo does not give you that, does she?

There is however one side that is valid. It comes from Senator Blumenthal. “Richard Blumenthal seeks reassurances from Pentagon that ‘they are on top of’ risk of sharing information with Gulf state” I believe the question to be unfounded, but it is a fair question. There is an essential need for the US to seek the best path for America and keeping classified out of Russian hands is a fair call to make. Yet the added “siding with the Russians in this manner – is so dramatic. I think it calls for a response” is partly false. You see OPEC+ is a group of 23 members and Saudi Arabia is only one of them. That majority is a lot larger and I do not know (but expects) that Saudi Arabia was one of them. This is the consequence of dropping Saudi Arabia as an ally. The BS sanctions in the US and the UK with the tea granny organisation (CAAT) all whilst Iran is attacking without consequence and now that Iran is sending its drones to Russia, will these two players do anything at all? or will thy merely pretend to make calls to Tehran all whilst they know perfectly well that this will have no consequence? When you drop a friend from your party you should not cry over the fact that there are consequences of that act. Even on the premise of all this, I was happy to offer my IP to the Kingdom of Saudi Arabia. If this enables more power to them to include technology and social media, my choice will give me the same pebbles but now with a much larger stage where the other wannabe’s can cry over even more spilled milk.

So when we are given “Jeff Abramson, a senior fellow at the Arms Control Association, said Saudi Arabia had been a major purchaser of US military equipment, including some of its most sophisticated weapons systems, for decades” true, but not lately isn’t it? That is why China is at the gates of Riyadh ready to sell THEIR equipment to Saudi Arabia, making the US lose even more billions in revenue, and in part this was paid for with millions of barrels of oil per day, as such the United States did this to themselves, but I do recognise that they want their secrets to remain THEIR secrets, especially as we see that Russian hardware is buckling all over Russia and the Ukraine. And it is then we see the larger screw up. It is given with “It is plausible that the Saudis have information about those weapons”, this implies that Jeff Abramson is not clear or is in cautious denial implying that there is no danger or he just doesn’t know what the commercial people informed Saudi Arabia about and it seems to me that Stephanie Kirchgaessner never picked up on that because there is no follow up on the foundation of ‘plausible’ and in addition we see “Prince Khalid bin Salman, said on Twitter that the decision by OPEC+ to cut oil output was made unanimously for “purely” economic reasons” which raises the question of what the US will do about the other 22 votes? This article raises one decent question and hides it in the BS of several other sides. Yes, the Guardian is really proud of the journo they have there, aren’t they?

I wonder what comes next, but if I have my way that would be a moot point because the impact would cost tech firms well over $500 million a month, they will not lose all that money, but they will lose a chunk of it and with that a lot more in the aftermath. Yes, these people really keep their eyes on the price.

Wall and writing

Yup that is the setting and it will be clear soon enough. It was a day in July when I wrote (at https://lawlordtobe.com/2022/07/18/for-those-not-seeing-the-oil-field/) titled ‘For those not seeing the oil field’, there I wrote “What happens when they sell 2.5 million barrels a day less and let that go to the US shortage?” So this was three months ago and now we see at NPR (at https://www.npr.org/2022/10/05/1126754169/opec-oil-production-cut) “The OPEC+ alliance announced a 2 million barrels a day cut in oil production Wednesday”, so I was off by only 500,000 barrels a day. I mentioned on a few occasions ‘I told you so’ and this time around it ill cost you, it will cost you a lot, because 2 million barrels less implies a fuel price rise of 10%-20% from the start and still in that time no one asked Brent oil any heavy questions. It is a commercial enterprise and as such it does not care about Americans and their cheap fuel needs. So whilst we all stare at “President Biden has been trying to rein in prices at the gas pump ahead of the midterm elections” all whilst he did close to nothing to rein in Brent and their selling of well over 75% of their stock abroad. You just cannot have it both ways. If you wanted cheap oil, they needed to treat Saudi Arabia as a real ally to a much better degree than they did. Consider going to the pastry shop asking: “Yo fat fuck, gimme a pastry for 10 cents” what are the chances that will work? Even if you make it “Sir can you please sell me a pastry for 10 cents” there will not be too many shops who will do that. A friend might, but America did whatever they could to make the Kingdom of Saudi Arabia a pariah whilst embracing the delay tactics of Iran, Saudi Arabia’s proxy enemy. This was all going to happen one way or another and the fake claims on Russia and Saudi Arabia are a joke. This all plays straight into the hands of China who optionally might end up with that extra oil. All settings that were out in the open from the beginning. On the other hand if oil prices go up, Saudi Arabia might be more interested in my IT solution that gives them at least $500 million a month extra. Time will tell (the commercial manager in the Saudi Consulate in Sydney is seemingly too busy to see me). Well time will tell what comes next but for now Americans will see fuel prices jump, they will see their wages go towards arming thanksgiving and Christmas households and all whilst they are all ‘enjoying’ dinner wearing thicker pants and an extra jumper. As such fashion houses take notice of those needs.

The writing was on the walls and I saw that danger happen 3 months ago. So whilst the US and UK went to Riyadh to ‘kindly please send more cheap oil our ways’ they forgot the first rule of diplomacy (politics too), you cannot make that effort empty handed and then let other organisations slap Saudi Arabia around, it never ever works that way. So when we consider “Yasser Elguindi, the head of macro research at Energy Aspects, says there’s a perception that the Saudis are trying to push prices back to or above $100 per barrel by cutting production and tightening the market. He says the magnitude of the proposed cut has caught people by surprise”, take time to notice that I saw that danger three months ago, so the ‘by surprise’ part is either hollow or a clear first show of reduced levels of competency. Yes the latter part is pure speculation, but feel free to check my earlier article, and consider what is up.

No matter how you slice it, the timing of the Kingdom of Saudi Arabia is pretty good, winter is coming. Where did I hear that before? No matter what, it will be a cold Christmas this year for a lot of Americans. I wonder what the impact will be in the states like New York, Pennsylvania and Washington, not to mention Washington DC. But the media might continue to avoid the Brent Crude Oil settings and for President Biden and the current PM of the United Kingdom I suggest that they take time and get the Master of Arts in International Relations and Diplomacy or brush up on what you learned there. It might help matters a little. Just some food for thought.