Showing posts with label Saudi Arabia. Show all posts
Showing posts with label Saudi Arabia. Show all posts

Wednesday, April 20, 2016

Paul Ryan and Obama Team Up To Block 9/11 Bill

Bipartisanship Breaks Out to Block 9/11 Bill

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A Senate bill that would allow families of those killed in the 9/11 attacks to sue the Saudi government has achieved a rare Washington distinction, by uniting the Obama administration and some of its fiercest GOP critics.

President Barack Obama, Speaker Paul D. Ryan, R-Wis., and Sen. Lindsey Graham, R-S.C., are rallying to kill the bipartisan plan that would make it possible for American citizens to sue foreign governments believed to be linked to terrorist attacks on U.S. soil.

White House Press Secretary Josh Earnest warned the legislation could lead other countries to craft even broader versions that could do significant harm to the U.S. government.

“It certainly is plausible … that that other countries when they're implementing these laws would not tailor them so specifically,” Earnest said. “And that does open up the United States to a unique degree of risk, and putting our country, our taxpayers, our service members and our diplomats in legal jeopardy in that way is contrary to our interests.”

Earnest said it would be “unwise” for the Senate to pass the legislation, “particularly when there is an alternative mechanism for us to resolve these kinds of issues with other countries.”

That alternative, he said, is “the essence of diplomacy.”

Shortly before Earnest appeared in the White House briefing room, Ryan spoke out against the so-called '9/11 bill.'

“I think we need to look at it,” Ryan told reporters at the Capitol. “I think we need to review it to make sure we are not making mistakes with our allies and that we’re not catching people in this that shouldn’t be caught up in this.

“The White House is opposed to it. It’s received some opposition here. We’re going to let these things work the process,” he added. “We’ll see where it goes from there.”

Administration officials are “gratified” to have Ryan as an ally as they try to block the legislation.

There has long been speculation that some members of the Saudi ruling family provided support to the al-Qaida hijackers on 9/11.

The White House on Tuesday picked up another unlikely partner in Graham, a hawkish Armed Services member and former GOP presidential candidate who is a frequent critic of Obama on foreign policy and national security matters. Graham placed a hold on the bill, wanting to review changes that have been made.

In fact, the legislation appears to align the president with many more Republican members than Democrats. Such scenarios, save a handful like trade bills, have been few and far between during Obama’s presidency.

Senate Minority Leader Harry Reid of Nevada says that in the Senate, it's Republicans that are more split.

"I support it, almost everyone in the caucus supports it," Reid said of his Democrats.

Earnest acknowledged that this White House’s alliances with GOP members “is rare.”

“But I think in this instance it is an indication of just how significant these questions are, and, you know, we're obviously gratified that there are other Republicans who have taken … a close look at this legislation and recognized the serious, unintended consequences that could result from its passage,” he said.

Majority Leader Mitch McConnell, R-Ky., on Tuesday declined to discuss prospects for the bill, which is sponsored by Majority Whip John Cornyn of Texas and the No. 3 Senate Democrat, Charles E. Schumer of New York.

Graham appears to be "concerned with the way that this administration has treated our allies, and particularly Saudi Arabia as a result of the misguided Iran nuclear deal,” Cornyn told reporters. “And now the president seems to want to use the leverage of the 9/11 families in order to somehow mollify or cure that rift that the president has created.

"This is really narrow provision, which only has to do with terrorist attacks on our own soil," Cornyn said, adding that it wasn't necessarily the case that it would apply to Saudi Arabia. "Let's let the chips fall where they may."

Saudi leaders have threatened to sell $750 billion in U.S. assets should the 9/11 victims bill become law. Earnest, however, seemed to dismiss that threat earlier this week , saying the Middle East power is a "large economy" and has no interest in destabilizing the global economy.

On a related note, Reid said that he supported the position of members of the independent, bipartisan commission that investigated the attacks, who want to see 28 pages of their report that remain classified be made public. The material is believed to draw a picture of foreign support for the 9/11 hijackers.

White House officials are actively contacting members to make their case. Earnest said the administration would like to have “a dialogue” with lawmakers about the legislation.

Contact Bennett atjohnbennett@cqrollcall.com. Follow him on Twitter @BennettJohnT.

Contact Lesniewski atnielslesniewski@cqrollcall.com and follow him on Twitter at @nielslesniewski.

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COMMENTS

Monday, January 25, 2016

Saudis 'will not destroy the US shale industry'

www.telegraph.co.uk

Hedge funds and private equity groups armed with $60bn of ready cash are ready to snap up the assets of bankrupt US shale drillers, almost guaranteeing that America’s tight oil production will rebound once prices start to recover.

Daniel Yergin, founder of IHS Cambridge Energy Research Associates, said it is impossible for OPEC to knock out the US shale industry though a war of attrition even if it wants to, and even if large numbers of frackers fall by the wayside over coming months.

Mr Yergin said groups with deep pockets such as Blackstone and Carlyle will take over the infrastructure when the distressed assets are cheap enough, and bide their time until the oil cycle turns.

“The management may change and the companies may change but the resources will still be there,” he told the Daily Telegraph. The great unknown is how quickly the industry can revive once the global glut starts to clear - perhaps in the second half of the year - but it will clearly be much faster than for the conventional oil.

“It takes $10bn and five to ten years to launch a deep-water project. It takes $10m and just 20 days to drill for shale,” he said, speaking at the World Economic Forum in Davos.

Shale has proven much more resilient than people thought Daniel Yergin

COMMENTS

Tuesday, January 19, 2016

We’ve defeated the shale revolution, claims Opec | The Times


www.thetimes.co.uk

Low oil prices finally damage US production

Opec was on the verge of claiming victory over its North American rivals last night after its strategy of squeezing out the shale industry by flooding the markets with oil appeared to be vindicated.

The oil producers’ cartel said that falling prices would force lower production from its rivals by the end of this year, with American and Canadian producers particularly affected.

Opec, led by Saudi Arabia, has maintained production levels even as crude prices have collapsed 70 per cent from their level in 2014. In its first monthly report of the year, Opec said that its policy was starting

COMMENTS

Gas wars: A gallon is just 46 cents here

www.cnbc.com

While gas prices are low nationwide, some stations are slashing the fuel's price to rock-bottom levels to the tune of less than 50 cents a gallon.

The drastic price cuts are part of a gas price war at three Houghton Lake, Mich., stations.

Athit Perawongmetha | Reuters

During the last three days, the prices dropped below a buck per gallon, falling as low as 46 cents at Sunrise Marathon. Meanwhile, the Beacon & Bridge gas station was as low as 47 cents, said employees of each station in interviews with CNBC.

A nearby Citgo says its prices slumped to 95 cents a gallon.

Read MoreThe coming bull market for oil, but not for stocks

There have been long lines at the stations for most of the weekend, according to the three stations, with police officers directing traffic in the area due to the congestion.

Local stations first reported this news.

COMMENTS

Monday, January 18, 2016

The North Dakota Crude Oil That's Worth Less Than Nothing

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www.bloomberg.com
Oil is so plentiful and cheap in the U.S. that at least one buyer says it would need to be paid to take a certain type of low-quality crude.
Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it would pay-$0.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a list price posted on its website. That’s down from $13.50 a barrel a year ago and $47.60 in January 2014.
While the negative price is due to the lack of pipeline capacity for a particular variety of ultra low quality crude, it underscores how dire things are in the U.S. oil patch. U.S. benchmark oil prices have collapsed more than 70 percent in the past 18 months and fell below $30 a barrel for the first time in 12 years last week. West Texas Intermediate traded at $29.03 as of 11:13 a.m. in New York.
“Telling producers that they have to pay you to take away their oil certainly gives the producers a whole bunch of incentive to shut in their wells,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Flint Hills spokesman Jake Reint didn’t respond to a phone call and e-mail outside of work hours on Sunday to comment on the bulletin. The prices posted by Flint Hills Resources and rivals such as Plains All American Pipeline LP are used as benchmarks, setting reference prices for dozens of different crudes produced in the U.S.
Plains All American quoted two other varieties of American low quality crude at very low prices: South Texas Sour at $13.25 a barrel and Oklahoma Sour at $13.50 a barrel. 
Canadian Bitumen
High-sulfur crude in North Dakota is a small portion of the state’s production, with less than 15,000 barrels a day coming out of the ground, said John Auers, executive vice president at Turner Mason & Co. in Dallas. The output has been dwarfed by low-sulfur crude from the Bakken shale formation in the western part of the state, which has grown to 1.1 million barrels a day in the past 10 years.
Different grades of oil are priced based on their quality and transport costs to refineries. High-sulfur crudes are generally priced lower because they can only be processed at plants that have specific equipment to remove sulfur. Producers and refiners often mix grades to achieve specific blends, and prices for each component can rise or fall to reflect current economics.
Enbridge Inc. stopped allowing high-sulfur crudes on its pipeline out of North Dakota in 2011, forcing North Dakota Sour producers to rely on more expensive transport such as trucks and trains, according to Auers.
Producers outside the U.S. are also feeling pain. The price for Canadian bitumen -- the thick, sticky substance at the center of the heated debate over TransCanada Corp.’s Keystone XL pipeline -- fell to $8.35 last week, down from as much as $80 less than two years ago.
Negative energy prices are rare but not unprecedented. Propane traded at a negative value in Edmonton, a key pipeline hub in oil-rich Alberta, for about three months last year. Oil refineries sometimes pay people to take away low-demand products such as sulfur or petroleum coke to free up space. However, those are both processing byproducts, while oil is a raw material, according to Auers.
“You don’t produce stuff that’s a negative number,” Auers said. “You shut in the well.”
COMMENTS

Iran sanctions: Middle East stock crash wipes £27bn off markets as Tehran enters oil war


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Www.telegraph.co.uk

Stock markets across the Middle East saw more than £27bn wiped off their value as the lifting of economic sanctions against Iran threatened to unleash a fresh wave of oil onto global markets that are already drowning in excess supply.

All seven stock markets in the Gulf states tumbled as panic gripped traders. London shares are now braced for a second wave of crisis to hit when they open on Monday morning after contagion from China sent the FTSE 100 to its worst start in history last week.

Dubai's DFM General Index closed down 4.65pc to 2,684.9, while Saudi Arabia's Tadawul All Share Index, the largest Arab market, collapsed by 7pc intraday, before recovering to end down 5.44pc at 5,520.41, its lowest level in almost five years.

The Qatar stock exchange, fell 7.2pc to close at 8,527.75, and the Abu Dhabi Securities Exchange shed 4.24pc to finish at 3,787.4. The Kuwait market returned to levels not seen since May 2004 as it slid 3.2pc lower, while smaller markets in Oman and Bahrain dropped 3.2pc and 0.4pc respectively.

The Iranian stock index gained 1pc, making it one of the best performing markets in the world with gains of 6pc since the start of the year.

The dramatic moves came following the historic report from the UN nuclear watchdog, which showed that Iran has met its obligations under the nuclear deal, clearing the way for the lifting of sanctions.

Implementing #JCPOA not a detriment to any country. Our friends are happy & our rivals need not worry. We're no threat to any nation/state.

— Hassan Rouhani (@HassanRouhani)January 17, 2016

The Vienna-based International Atomic Energy Agency issued the landmark document late on Saturday evening, sparking mayhem as markets opened on Sunday, the first day of trading in the Middle East.

The stock markets in Dubai and Saudi Arabia have been plunged into a painful bear market, losing 42pc and 38pc respectively, ever since Saudi Arabia decided to ramp up oil production in November 2014.

Oil prices fell below $30 for the third time last week as traders prepared for the prospect of Iranian oil flooding global markets.

The Islamic Republic has vowed to return its oil production to pre-sanction levels that stood above 3m barrels a day.

“The oil ministry, by ordering companies to boost production and oil terminals to be ready, kicked off today the plan to increase Iran’s crude exports by 500,000 barrels,” the official Islamic Republic News Agency reported on Sunday, citing Amir Hossein Zamaninia, deputy oil minister.

Fears that the Islamic Republic could quickly ramp up production sent Brent crude falling by 3.3pc to $29.43 on Friday - matching lows last seen in 2004.

West Texas Intermediate also slipped back to $29.60, a decline of 4.5pc.

Standard Chartered became the latest bank to raise fears over the oil price by downgrading its outlook to $10, following the likes of Goldman Sachs, RBS and Morgan Stanley.

The price of oil was $115 per barrel 18 months ago until Saudi Arabia greatly increased production to crush rivals in the US and Russia.

Oil price crash means petrol could become cheaper than bottled water

18 months ago a barrel of #oil bought you a bottle of Pol Roger 2004 champagne. Today it gets you Tesco Finest.pic.twitter.com/ROxaaTmW3H

— RBS Economics (@RBS_Economics)January 15, 2016

The relentless fall in oil has seen prices return to levels not seen since 2004.

Mapped: How the world became awash with oil

Interactive: Oilmapembed

COMMENTS

Friday, January 15, 2016

Glutted oil market faces new flood from Iran | The Times

www.thetimes.co.uk

Millions of extra barrels of Iranian crude oil could begin spilling on to world markets next week, adding further to fierce downward pressure on prices, experts have warned.

With the United Nations, which completed inspections at an Iranian nuclear site yesterday, expected to approve the removal of trade sanctions as early as Monday, Iran has pledged to begin pumping up to half a million barrels of extra crude per day within one week.

The excess output promises to exacerbate a growing international glut of oil that has already sent prices sinking to their lowest level in 12 years. The price

COMMENTS

Tuesday, January 5, 2016

Trump: ‘I’m Not Going To Tell’ What I’d Do With ‘Disaster’ Iran Deal, People Don’t Have Right To Know How Far I’d Go

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by IAN HANCHETT4 Jan 2016159
Republican presidential candidate Donald Trump stated “I’m not going to tell you right now what I’m going to do” with regards to the “disaster” Iran nuclear deal, and he would “protect Saudi Arabia” against an Iranian incursion if they reimbursed the US on Monday’s “O’Reilly Factor” on the Fox News Channel.
Trump began by saying, [relevant remarks begin around 5:00] “I will say this about Iran, they’re looking to go into Saudi Arabia. they want the oil. They want the money. They want a lot of other things having to do. They took over Yemen. You look at that border with Yemen, between Yemen and Saudi Arabia. That is one big border, and they’re looking to do a number in Yemen, and I think they want it to go. That’s phase one, to go into Saudi Arabia, and, frankly, the Saudis don’t survive without us. And the question is, at what point do we get involved, and how much will Saudi Arabia pay us to save them? Because that’s ultimately what’s going to happen. We made a true — we made a power power out of Iran. We made a power out of Iran with the deal.”
He was then asked if he would use US troops to help fight off an Iranian incursion into Saudi Arabia if it pays some of the costs. Trump responded, “Well, right now if you look at right now, we pay — you know, we get — we already defend Saudi Arabia, right now, we’re defending them. Every time there’s a problem we go in and defend. And frankly, as far as I’m concerned, that’s all fine. We have to now — we owe $19 trillion, Bill. We’re defending everybody. We’re defending the world.” He added, “we can’t continue to defend everybody, and lose on every single thing we do. We have to rebuild our country. Our country is a mess. Our infrastructure’s crumbling. We owe $19 trillion.”
Trump was then asked if he would “take military action against Iran?” “Well, I would want to help Saudi Arabia. I would want to protect Saudi Arabia. But Saudi Arabia is going to have to help us economically. They were making, before the oil went down, now they’re making half, but they were making a billion dollars a day.” He added that such action against Iran would depend  “on what the deal is, I would have to do that. I would defend certain groups of people over there. The deal we made with Iran is a disaster. The deal we made for $150 billion is a total disaster.”
Trump further criticized the Iran nuclear deal, which prompted a question on whether he would “scrap the deal” or bomb Iran’s nuclear facilities. Trump answered with, “I’m going to do what’s right. I want to be unpredictable. I’m not going to tell you right now what I’m going to do. The problem is, we have a president that he says we’re going to get out of Iraq on such and such a date. Everybody pulls back, and then as soon as we leave they go in. We have to show some unpredictability. I want to be unpredictable. I don’t want to tell you exactly what I’m going to do.”
When questioned on whether voters have a right to know how far he would go, Trump said, “No they don’t. … Because it depends on the circumstances. But, the voters want to see unpredictability. They’re tired of a president that gets up and says every single thing.”
Trump concluded, “I want to protect, but I also want to be reimbursed for the protection. We’re dealing with tremendously wealthy countries, and we’re never reimbursed.”
Follow Ian Hanchett on Twitter@IanHanchett
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