Posted on 01/23/2015 10:47:10 AM PST by Rusty0604
In earlier time, the death of Saudi Arabia's King Abdullah bin Abdulaziz Al Saud would have rocked the oil market. The succession plan has always pointed in a direction away from U.S. interests and a turn toward an even harder line on Middle East issues. The antipathy toward Iran will be levered up, and the various Sunni-Shia battles will likely see greater escalation.
Oil prices have quickly jumped $1.00 per barrel on the news in a knee-jerk reaction to the uncertainty. What is more likely is an even greater commitment to over supplying the market, in attempt to drive out higher cost producers and hurting Iran and Russia as an additional benefit.
King Abdullah did push for modernization of Saudi society, allowing for more rights for women, but those efforts are now likely to be tabled.
While the short-term plan is likely to attempt to hurt frackers, Iran and Russia via an over-supplied market, the longer-term implications are for oil supply policies that are more hostile toward western consumers. In addition, the appetite for bringing the proxy war to Iran and other Shiite factions in the region will rise, which result in a return of the geopolitical risk premium in the years ahead.
U.S.-Saudi relations and longer-term Saudi oil production policy just took a turn for the worse with the death of King Abdullah.
(Excerpt) Read more at cnbc.com ...
However, if ISIS invades Saudi Arabia, then prices will soar. Hard to say what will happen, isn’t it?
Does it seem like the stars are aligning to anybody else?
This article is silly...it’s hedging it’s bets so that it can claim to be correct on both sides.
ISIS would be stupid NOT to invade SA right now, with “President s^%$ for brains” in the WH!
It’s a tailor-made scenario for them to succeed. America has the weakest, most irresolute, most inexperienced, dumbest and MOST ‘US-enemy-compliant’ President of all time in office!
Well it was written by a commodities investor.
You’d THINK we were in a World War, just based upon the blood shed and the treasure squandered under this guy.
And...he gets a PASS! Grrrrr!
What country provided most of the 9/11 kamikazes?
America has a Moslem President. He is personally weak but his Vizier, Jarrett, is not. They are advancing the cause of Islam while at the peak of the primary Infidel nation.
That Val is a little, poison dwarf. When all the dust settles... I wonder if the world will have a place for her to hide.
There has been a great disturbance in the Force.
As if millions of voices cried out in terror, and are suddenly silenced.
Something terrible has happened.
Does it seem like the stars are aligning to anybody else?
anal retentive much?
Incredible.
Something terrible has happened.
Moslem
Homosexual
Marxist
Foreign born and probably a non citizen
No practical experience
No records
“Oil prices have quickly jumped $1.00 per barrel on the news in a knee-jerk reaction to the uncertainty”
Deflection.
No, oil and everything has gone up because the Euro QE is buying 50 Billion in bonds per MONTH, without any verified structural changes.
Same scam as in the U.S. that has consumers paying triple grocery bills and more, and sustained government big pensions, positions, and salaries, Exempt-Care.
ISIS has sensed an opportunity in the power vacuum that now exists in Saudi Arabia.
This will send shock waves through events for decades to come. No one will step into the breach.
Consider the recent events in Yemen, and multiply that by about fifty. That would be Saudi Arabia, after attempted invasion by ISIS.
Iran would almost certainly have to get involved.
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