Saudi oil policy 'just took turn for the worse'

CNBC ^ | 01/23/2015 | John Kilduff

[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.

[SunkenCiv]

• Yemen's president and PM 'resign
• Iran-Backed Rebels Just Sacked Yemen's Presidential Palace [Obama Wants Iran to Have Nukes]
• REUTERS: Yemen leader expected to accept demands of Houthis who defeat his guards
• Yemeni rebels hold president 'captive' at his house (+captured base housing ballistic missiles)
• Obama touts Yemen as success story... 4 months later government overrun by terrorists
• FLASHBACK: Obama Tonight: Yemen and Somalia Are Models of Success (!)
• Shiite rebels shell Yemen president's home, take over palace
• Rebels in Yemen have seized the presidential palace
• Shots fired at U.S. Embassy vehicle in Yemen after day of fighting
• The meteoric rise of the Houthis in Yemen (good background on what's happening)
• Yemeni Government Admits It Has Lost Control Of Nation Amid "Attempted Coup"
• Output stopped at Yemen's Masila oilfields in Hadramout
• Obama Shows Solidarity with Yemen-sponsored Attack in Paris by Releasing 5 Yemeni Terrorists
• Five Yemeni Prisoners Released From Guantanamo Bay (New!!)
• Yemen: Another Failure The Obama Administration Touted As a Success
• New issue of jihadist magazine produced by al-Qaeda in Yemen suggests attacks on U.S.
• 4 Sunni Muslim Groups Responsible for 66% of All 17,958 Terror Killings in 2013

  [and 85-90% of the world's Muslims are Sunni, IOW, Shiites kill twice as many per capita]

• While you were watching ISIS, Iran took Yemen
• Gulf Arabs demand return of state authority in Yemen
• Yemen closes hospital found to be Iran front supporting Shi'ite rebels
• Iran urges Yemen's neighbors to stay out of rebellion
• Yemeni Officials Facilitating Iranian Missile Shipments?
• Jihadis Report Of Syrian Meddling In Yemen [2009]
• Iran: Leader of the Sunni Movements (with an intro by Michael Ledeen) [2008]
• Israelis warn of Eritrea flashpoint [2009]
• Iran Deploys Troops, Ballistic Missiles To Eritrea [2008]
• Eritrea warns of "consequences" for U.S. in Somalia [2007]
• Keyword: iranianmissiles

[SunkenCiv]

Another steaming pile of an op-ed.

[SWAMPSNIPER]

A senile radical islamist running things, what could go wrong?

[EQAndyBuzz]

“ISIS would be stupid NOT to invade SA right now, with “President s^%$ for brains” in the WH!”.

Actually, an ISIS attack on SA would be attributed to Iran.

Where Valerie Jarrett is from.

[Obadiah]

So it’s not just me? Sheesh.

In summary, this could happen, or that could happen. These are all possibilities, but we don’t have any clue.

[mountn man]

If the Saudi's think they hold all the cards, they better beware of Puty.

The ME is a powder keg and a little fire here or there can make things explode.

If Puty gets pi$$ed, I see a very real possibility that he causes something to happen somewhere.

An unstable ME would cause oil prices to rise, just what Puty wants and NEEDS.

[Capt. Tom]

ISIS would be stupid NOT to invade SA right now, with “President s^%$ for brains” in the WH!

If Sunni ISIS and Sunni alQaeda move on Saudi Arabia, Iran could go for a piece of the action in Saudi Arabia under the guise of protecting the Shia minority in SA from a Sunni religious cleansing. -Tom

[Rusty0604]

Russia and Iran Sign Military Cooperation Deal

http://abcnews.go.com/International/wireStory/russia-iran-sign-military-cooperation-deal-28341351

Russia may send S-300 missile system to Iran - media

http://news.yahoo.com/russia-may-send-300-missile-system-iran-ria-141917297.html

[slickdain]

Wrong! WTI Crude Oil $46.31 ▼-1.47 -3.17% 2015.01.22 end-of-day

[ryan71]

Last I checked, GOD created the stars.