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View Full Version : Saudi's Threaten to "Open (Oil) Spigots" to Bankrupt Iran ? - Effect on PM Prices



gunDriller
23rd June 2011, 05:52 AM
http://oi55.tinypic.com/2lddtnl.jpg

http://online.wsj.com/article/SB10001424052702304887904576400083811644642.html?m od=WSJ_hp_LEFTTopStories

" A leading member of Saudi Arabia's royal family warned that Riyadh could seek to supplant Iran's oil exports if the country doesn't constrain its nuclear program, a move that could hobble Tehran's finances.

In closed-door remarks earlier this month, Saudi Prince Turki al-Faisal also strongly implied that Riyadh would be forced to follow suit if Tehran pushed ahead to develop nuclear weapons and said Saudi Arabia is preparing to employ all of its economic, diplomatic and security assets to confront Tehran's regional ambitions."


http://blogs.forbes.com/christopherhelman/2011/06/22/saudis-set-to-bankrupt-iran-with-flood-of-oil/

"Saudis Set To Bankrupt Iran With Flood Of Oil"

"Today the Wall Street Journal has a fascinating piece describing a speech given this month by Saudi Prince Turki Al-Faisal. The prince, speaking to a group of U.S. and British servicemen at an airbase near London, explained that Saudi Arabia was so concerned about Iran’s continued march toward attaining nuclear weapons that it was considering opening its oil spigots and swamping the world with oil in the interest of gutting Tehran’s government revenue. The prince insisted that the Saudis still have sufficient spare production capacity that, if need be, “we could almost instantly replace all of Iran’s oil production” of roughly 4 million bpd."


From which orifice shall the oil be extracted ?

Anyway, I noticed that PM's have been tracking oil pretty close the last few months (oil up, dollar down, silver up ... oil down, dollar up, silver down).

I don't think the Saudi's have the reserve capacity to do this.

But I do take seriously the rumors that one of the purposes of the Iraq invasion was to share some of Iraq's 110 billion barrels with Saudi Arabia clandestinely, to mask an impending collapse in Saudi production.


In any case, wherever the Saudi-branded oil comes from, if TPTB are planning a Discount Sale on oil ... well, OK.

I don't see how $85 or $90 oil is going to bankrupt Iran. Their oil has a low extraction cost.

In any case, it may explain today's oil & PM price action.

osoab
23rd June 2011, 06:03 AM
Today's plunge is Euro related. Red across the board.

http://www.finviz.com/futures.ashx

I am wondering if the Saudi's will drain the Persian Gulf to keep the pressure of the oil out if they are going to ramp up production.

I think most of these stories are being thrown out, so people can look to something for causation.

I would like to know what the HFT algos are up to.

gunDriller
23rd June 2011, 06:43 AM
Today's plunge is Euro related. Red across the board.

http://www.finviz.com/futures.ashx

I am wondering if the Saudi's will drain the Persian Gulf to keep the pressure of the oil out if they are going to ramp up production.

I think most of these stories are being thrown out, so people can look to something for causation.

I would like to know what the HFT algos are up to.

the thing i don't get is, why is the Dow down ?

yes, the jobs # came out & it wasn't good - but that's no surprise.

oil @ $91 a barrel is good for the US economy. bad for the oil company stocks that make up the Dow perhaps, but ... compared to $101 a barrel, the US is saving about $210,000,000 a day (the US consumes about 21 million barrels per day).


it's interesting how having one of the US proxies (Saudi Arabia) talking tough re. Iran helps to prop up the US $ for another day.

almost as if suppressing Iran was KEY to the US "strong dollar" policy.

i wonder how much that means, if the US doesn't march in lockstep with Israel wishes, their loyalists on Wall Street & in London will short the US $.

osoab
23rd June 2011, 06:52 AM
Euro - Dollar spread. Bucky's moving and Euro tanking. Bucky's movement also has to have a hand in the commodities breakdown here. The grains may be an exception. Corn has been down hard since the margin increase last week.

A little more to the oil story.
IEA To Release 60 Million Barrels Over Coming Months, To Ensure Supply Due To Libya (http://www.zerohedge.com/article/iea-release-60-million-barrels-over-coming-months-ensure-supply-due-libya)

letter_factory
23rd June 2011, 07:23 AM
The saudis are full of it. Let them open up their spigots and drain their oil all they want. In the end, the same devil's they're conniving iwth will turn on them just like they've turned on everyone else, and the saudis will have no one to turn to. Lindsey Williams was right--the saudis will get overthrown.

Shami-Amourae
23rd June 2011, 07:27 AM
I used to be a private cook for these mother fuckers. Anyone who thinks filet mignon should only be served well done has something seriously wrong with them.

Son-of-Liberty
23rd June 2011, 08:34 AM
I don't think the saudi's even have the ability to increase production much. They are just trying to talk the price of oil down for uncle sam who calls the shots.

EE_
23rd June 2011, 08:49 AM
I bet insiders are buying and covering short positions.
With WWIII coming soon, oil might be a good buy?

Dogman
23rd June 2011, 08:54 AM
I bet insiders are buying and covering short positions.
With WWIII coming soon, oil might be a good buy?

If war ever comes , expect immediate price controls and rationing, of dam near everything.