Saudi Arabia is again promising to ramp up oil production to save the world. The chart below from Zero Hedge reveals these Arabs to be liars and knaves. In the last 11 years they have never been able to get their production above 9.8 million barrels per day. During this time we’ve had the Iraq War that took millions of barrels off the market, we had the 2008 price spike to $140 a barrel, we’ve had the Libyan production off the market, and now we have Iranian production off the market. With all this turmoil, Saudi Arabia has only been able to ramp up production by 300,000 barrels in 11 years. They have been declaring for years they have the ability to produce 12 million barrels per day. It’s a lie. Their major oil fields are 50 years old and they are depleting. They are struggling to maintain their current production levels. Peak Oil is a bitch, even for Arabs.
The important factoid in the article below is that they have leased 11 supertankers that can hold 2 million barrels each and will be filling them and sending them to the U.S. with an arrival date of around April 1. Saudi Arabia only provides 10% of our oil daily imports but is shipping more than 100% of our daily needs in one fell swoop. Why would they do this? This is a highly unusual act. It seems timed to provide excess oil early in April. This is another dot pointing towards an attack on Iran within the next few weeks. The dots sure seem to be piling up.
Saudi Arabia sends tankers to US with pledge to bring down oil price
Saudi Arabia has pledged to take action to lower the high price of oil, which has risen to around $125 a barrel, with laden supertankers set to arrive in the US in the coming weeks.
Saudi Arabia said yesterday it will work “individually” and with the other petrol-rich Gulf states to return prices to “fair” levels.
The country indicated earlier this year that $100 a barrel was the ideal oil price.
The price of oil slid this morning in London as a result, with Brent crude trading down as much as 1pc at $124.40.
Oil prices have climbed to $127 a barrel this year, just $20 short of their all-time high, as tighter Western sanctions on Iran threaten to choke off the country’s exports.
Prices also took a hit this morning after China increased retail fuel prices for the second time in two months, increasing concern that demand in the country – the world’s second-largest oil consumer after the US – will decline.
That compares to the one supertanker every two months sent to the US from Saudi last year, the Financial Times reported.
President Barack Obama is under pressure to bring down the price of gasoline, one of the key issues for US voters, as he steps up his re-election campaign.
The US economy is not “out of the woods yet” as rising petrol prices threaten to dent Americans’ purchasing power, William Dudley, the head of the New York Federal Reserve, warned yesterday.
The International Monetary Fund (IMF) has also warned that surging oil costs pose a serious risk to the global economy, threatening to smother expansion before a fresh cycle of growth is safely under way.
“The world is not yet out of the danger zone,” said Christine Lagarde, the IMF’s managing director, speaking in Beijing at the weekend. “The rising price of oil is a new threat that could derail the recovery. I think it is a major threat.”
The head of airline industry body, the International Air Transport Association (IATA), also warned today that airlines face bankruptcy if fuel prices rise further to $150 a barrel.
“We cannot rule out the possibility of some bankruptcy, all regions will lose in this case, the most losses will be in Europe, but everywhere, there will be significant effects,” said Tony Tyler.
flash says:
“sending them to the U.S. with an arrival date of around April 1. ‘
Phewww..dodged one again.
Muck can come out of hiding now.
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20th March 2012 at 9:05 am
Administrator says:
Is The SPR Release Already Priced Into Oil Prices?
Submitted by Tyler Durden on 03/20/2012 08:51 -0400
As the rumor (and denial) of the potential release of the SPR washed out Crude and Brent prices last week, only to recover within 24 hours, we wonder if this was all the bang for the buck that these kind of pre-announcements will get. With the majority of crude reserves based in the US and product reserves based in Europe and spare capacity falling as OPEC picks up production even as Iran backs off, Morgan Stanley notes that the maximum stocks drawdown of the SPR in month 1 could average 14.4mmb/d (10.4mmb/d of crude and 4.0mmb/d of products) which is enough to mitigate flows passing through the Strait of Hormuz (according to the IEA). However with only 90 days of cover at these rates, it is hardly the ‘solution’ to even the briefest of geopolitical disruptions. This perhaps explains the price action of previous SPR announcements, which varies by crude benchmark, but holds prices lower for a maximum of two weeks. Most notably, the greatest price drops on the SPR announcement tend to occur in the first 2-3 days (and in the very front months) at which point the term structure starts to increase once again. Louisiana Light tends to be hit the most followed by Brent and then WTI but the rebound is just as aggressive and we wonder if last week’s rumor was merely a strawman to see just what impact was possible (we dropped 2-3% or so) and recovered rapidly compared to the 4-5% drop in June during the Arab Spring release (which was the largest release in the last 20 years).
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20th March 2012 at 9:12 am
Administrator says:
flash
That info confirms what Muck has been saying.
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20th March 2012 at 9:12 am
Maddie's Mom says:
If true, it’s all about orchestrating re-election of the O.
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20th March 2012 at 9:23 am
Welshman says:
TBP,
Believe, it is like a broken record. Be calm help is on the way.
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20th March 2012 at 9:47 am
sensetti says:
Those extra tankers give me a warm feeling for about ten seconds, after Israel hits Iran gas and food prices will skyrocket, how significant will a few extra tankers of oil be. Obama is just trying to get all the oil he can, coming this way before the missiles start flying.
New flash
Bryon Wein just stated on CNBC that tensions in the ME will subside and oil prices will drop significantly by the end of the year.
Damn I hope he’s right.
Muck will be pissed when he sees that Mustang drive by, I am betting Muck is right
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20th March 2012 at 10:25 am
flash says:
@admin
The mystery is why MA thinks predicting an extreme rise in oil price would jeopardize his freedom?
Or was escalating oil all that he was hinting at?His comment was pretty vague to me… unless I missed more?
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20th March 2012 at 10:54 am
flash says:
Speaking of connecting the dots….psychopaths can change careers , but not their mindset.
Shoulda’ known. Vermin will be vermin will be vermin.
http://news.yahoo.com/afghan-murder-suspect-bales-took-life-savings-says-223934030–abc-news.html
Afghan Murder Suspect Bales ‘Took My Life Savings,’ Says Retiree
ABC NewsBy BRIAN ROSS and MEGAN CHUCHMACH
Robert Bales, the staff sergeant accused of massacring Afghan civilians, enlisted in the U.S. Army at the same time he was trying to avoid answering allegations he defrauded an elderly Ohio couple of their life savings in a stock fraud, according to federal documents reviewed by ABC News.
“He robbed me of my life savings,” Gary Liebschner of Carroll, Ohio told ABC News.
Financial regulators found that Bales “engaged in fraud, breach of fiduciary duty, churning, unauthorized trading and unsuitable investments,” according to a report on Bales filed in 2003. Bales and his associates were ordered to pay Liebschner $1,274,000 in compensatory and punitive damages but have yet to do so, according to Liebschner.
“We didn’t know where he was,” Liebschner told ABC News. “We heard the Bahamas, and all kinds of places.”
Liebschner says he recognized Bales after news reports named him as the American soldier accused of killing 16 Afghan villagers in a shooting rampage.
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20th March 2012 at 10:56 am
Stucky says:
Once again you fuckin people are fuckin freaking me out!!
I need some connect the dots humor.
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20th March 2012 at 10:58 am
flash says:
LOL…saw this in the comment section…
BUD of the WEISER • Boston, Massachusetts • 4 hrs ago
His wife says “killing those people was out of his character”???…I guess bilking people out of their life savings is more his style of character!!!
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20th March 2012 at 10:58 am
Stucky says:
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20th March 2012 at 10:59 am
Stucky says:
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20th March 2012 at 11:01 am
Administrator says:
Byron Wein and CNBC
Wow!!!
They’ve never been wrong before.
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20th March 2012 at 11:02 am
Administrator says:
flash
Muck is predicting a shooting war with Iran on April 1.
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20th March 2012 at 11:08 am
flash says:
@ admin…LOL…that’s an easy one….so am I.
And maybe the Russians think so too!
Russian Anti-Terror Troops Arrive in Syria
http://abcnews.go.com/Blotter/russian-anti-terror-troops-arrive-syria/story?id=15954363#.T2efd46UzhG
I saw something on ZH in which ABC now claims that they have no evidence of Russian soldiers on Syrian soil which begs the question of why put it out in the first place if no evidence existed ?…hhmmmm…funky rat smell alert.
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20th March 2012 at 11:30 am
flash says:
Well maybe not the first of April , but in the near future.
Apparently MA has his bunker stocked and has went underground….been awful quiet recently.
Maybe he’s already sharing a cell with Big Bubba Muhammed at Club Gitmo?Washing and mending socks I suppose.
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20th March 2012 at 11:33 am
Administrator says:
flash
There is nothing left to say:
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20th March 2012 at 11:35 am
flash says:
Personally, i don’t think the FEMA camps will be that bad.The silver lining is that we will all be surrounded by like-minded people.
Instead of the comment section on TBP ,we can scratch our protest comments in the dirt as we hoe potatoes and chop the cotton, but only when the guards aren’t looking.
And if you want to rec a comment , just throw a pebble on it.
It’ll be a swell time for all.
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20th March 2012 at 11:47 am
flash says:
@admin..
That is classic internet right there.
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20th March 2012 at 11:50 am
AWD says:
Admin, you told us that oil/gasoline consumption has gone down. More oil isn’t going to help, unless the U.S. is stockpiling it (prepping).
The bears told us that gas prices are going up because Bernake keeps devaluing the dollar, not because of supply issues.
Now Russia is sending troops to Syria, and Israel is finishing their targeting preparations for Iran. After Israel attacks Iran (on April 1st?), and Iran attacks our ships, and Obama signs the National defense preparation act (or whatever the official name turns out to be), we’ll be given Obama cards to get food and gas, as everything will be nationalized. So, what difference does gas prices make?
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20th March 2012 at 11:52 am
AWD says:
FEMA camps here we come.
To get the kids ready:
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20th March 2012 at 11:54 am
bluestem says:
Wow Stuck, you really are on a roll today! John
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20th March 2012 at 11:59 am
flash says:
But on the bright side, once the SHTF all the millions outa’ work will suddenly be gainfully employed just trying to stay alive.
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20th March 2012 at 12:01 pm
flash says:
@stuck… this blonde’s no joke.
http://www.youtube.com/watch?v=OdYTj5CChaA
FWIW …the husband is a major dick, which explains why he settled for a ditz…only option available for him …I would assume
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20th March 2012 at 12:06 pm
AWD says:
Boomer hippies will appreciate this one:
This is where politicians will be staying (instead of FEMA camps); underground bunkers:
Haha! I can’t remember who came up with the dictum, “why declare martial law when you don’t have to?”, but I think it fits your question. One part of America fits the description of a friendly fascist state: happy, SUV driving, Obama supporting, McCitizens who have no need for a tank to be pointed at them in order to get them to obey. People with an awareness of the country’s parapolitics don’t need martial law declared to know they’re already in a fight against that kind of thing
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20th March 2012 at 12:22 pm
Stucky says:
Yes indeedy I am on a roll today. But it seems one of my pics did not meet the Santorum Family Value criteria .. and was deleted by someone who can delete entries .. not sure who that is. No Big Deal. I’m surprised more of my pics aren’t deleted … like that ass hemmoroid pic from last week.
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20th March 2012 at 12:34 pm
AWD says:
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20th March 2012 at 12:47 pm
sensetti says:
Just for the record
I don’t believe a damn thing the MSM says. CNBC is the fantasy channel. Those boys and girls are strung out on some kind of Delusional Psychedelic drug
CNBC on Air personnel found to be participating in drug trials
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20th March 2012 at 12:48 pm
Mary Malone says:
Have you read about the mass resignations of Corporate CEO’s, International Government Leaders and Financial Execs?
Looks like the rats are jumping ship….
http://www.facebook.com/MassResignations/app_2374336051
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20th March 2012 at 10:56 pm
Thinker says:
Wow, Mary… that’s an eye-opener.
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20th March 2012 at 11:05 pm
ron says:
Da,send free stuff so the people are happy and wont riot against the state.Blame the jews! or the rich.
Yes Mary memorys of photos of leaders strung up with piano wire makes for nervous criminals.
Americans like moose and Squirrel, fat and dumb sit to much,poop brain out butt.
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20th March 2012 at 12:12 am
Administrator says:
Mary
That list is definitely another Dot. Something is brewing and it’s not going to be pleasant. I think we all feel it in our bones.
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20th March 2012 at 8:14 am
flash says:
LOL ..
Tit for tat?
March 20, 2012
Extraps
Posted by Lew Rockwell on March 20, 2012 08:37 PM
Writes Brian Wilson:
Okay….
SSG Robert Bales plotted and executed an attack that killed innocent Afghan civilians.
SSG Robert Bales is being sheltered in another nation.
Afghan authorities have demanded he be given to them for punishment.
The sheltering nation has refused.
Seems to me that Afghanistan is now justified, based on precedent established in international law, in bombing the living crap out of Washington DC and the entire East Coast and then landing troops to shoot the snot out of whatever’s left.
I wonder if they can assemble a Coalition of the Willing to make it happen.
| Suggest a Link
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20th March 2012 at 9:13 am
Administrator says:
Saudi Action Does Not Lower Crude Prices
Saudi Oil Minister Ali al-Naimi told Reuters that there is no shortage of oil supply globally and that his nation could raise output by 12.5 million barrels a day. The leader of the largest oil producer in the world also said the nation has sent several supertankers, filled with crude, toward Texas refineries. Yet, the price of WTI crude rose almost 0.6% to $106.68 the day after the news. Brent hovered at $125. The Saudi promise has not meant much in the face of a number of other problems.
Many of these problems will not be overcome, even if the Saudis double the number of tankers they send to the U.S. and other developed nations. Several events will prevent a drop in oil prices.
U.S. refineries, particularly along the East Coast, have or will shut down because they cannot make a profit on the products they distill from crude. Other capacity is offline as well. Weather and maintenance have cut some exports from oil rich nations. And refinery maintenance is usually not a short-term project.
The main reason oil is high is the improbable chance that the Iranians could try to shut the Strait of Hormuz. Some 20% of the world’s oil exports pass through the strait. The first reaction to this threat was to send a U.S. carrier group close to the strait that would keep Iranian warships out of the area. That may work, but it also could prompt a shooting war. That might draw in Israel and could lead to a widespread, violent and long-term military action. What would happen to oil supply — and price — can only be guessed at. Some speculate that crude would move to $150 or $200 and would remain there for some time.
The Saudis have agreed to export an amount of crude that logically should calm the oil markets. An event that is very unlikely to happen has more than trumped that move.
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20th March 2012 at 9:37 am
Administrator says:
Saudi Arabia Aims to Deliver “Wall of Oil” to US; Oil Minister Says “High Oil Prices Unjustified” ; Highest March Price in History; Republicans Say Obama Not Doing Enough
Wall of Supertankers Heads For US
Brent crude at $125, US Crude at $110, and soaring gasoline prices everywhere have caused quite a stir. See Highest Price Ever of Gasoline in March; State-by-State Gas Price and Gas Tax Comparison for a discussion.
In response to high prices, Saudi Arabia has a plan to send a wall of supertankers to the U.S. to knock down prices and Republicans have attacked President Obama for not doing enough.
Please consider The price that launched a wall of ships
In a matter of days, Saudi Arabia has hired the largest number of super-tankers in years. When the tankers load their cargo in Ras Tanura, the world’s largest oil terminal, in the next couple of weeks and start a 40-day voyage towards the US Gulf coast, they will deliver a wall of oil with a single aim: to bring prices down.
“This is the first time in several years for [Saudi Arabia] to hit the market with such volume – and in such a short time frame,” says Omar Nokta, a shipping expert at specialist investment bank Dalham Rose & Co.
Last week, Vela, the shipping arm of Saudi Aramco, hired over a few days 11 so-called very large crude oil carriers, each capable of shipping 2m barrels, to deliver to US-based refiners. “In 2011, Vela fixed one VLCC to the US every other month,” Mr Nokta says.
The hiring spree was the most public move by the kingdom in a series of efforts aimed at bringing down oil prices from $125 a barrel towards $100. “They want to bring prices down. That is it,” says a former Western oil official.
Saudi Oil Minister Says “High Oil Prices Unjustified”
Please consider Naimi calls high oil prices ‘unjustified’
Saudi Arabia’s powerful oil minister Ali Naimi sought to cool overheating oil markets on Tuesday, saying high oil prices were “unjustified” and that the kingdom could boost its output by as much as 25 per cent if necessary.
Supply was much more robust than it had been in 2008 when crude rose to $147 a barrel, he said.
As the west’s nuclear stand-off with Iran escalates, oil prices have rallied this month to a post-2008 peak of $128 a barrel with markets bracing for European Union sanctions on Iranian crude that could knock out a chunk of global supply. Jitters have been fuelled by supply outages in Syria, Yemen and South Sudan.
High quality global journalism requires investment.
Christine Lagarde, managing director of the International Monetary Fund, said on Tuesday that rising energy prices had now overtaken Europe’s sovereign debt crisis as the biggest worry for the global economy. Speaking in New Delhi, she said that while the world financial system had strengthened over the past three months, volatile oil prices would have “serious consequences”.
But Mr Naimi insisted that supply was “much more firm today than in 2008”, the time of the last big oil increase. Saudi Arabia had 2.5m b/d of additional production capacity, which it could bring online if necessary.
Saudi Arabia is likely to be producing about 9.9m b/d of oil in April and exporting roughly 7.5m-8m b/d of that, he said. Asked if the kingdom could ease prices by exporting more oil, he said customers were not asking for additional crude. “We are ready and willing to put more oil on the market, but you need a buyer,” he said.
Republicans Say Obama Not Doing Enough
MarketWatch reports Republicans launch new attacks on Obama, Chu over gas prices
Republicans launched fresh attacks on the Obama administration on Tuesday over the soaring price of gasoline, ripping the White House in an election-year bid for the upper hand with consumers.
Testifying before the House Oversight and Government Reform Committee, Energy Secretary Steven Chu was peppered with questions about what the administration has done to bring down gasoline prices, which are now averaging $3.85 a gallon versus $3.55 a gallon a year ago.
Republican presidential candidates Mitt Romney and Newt Gingrich have called for Chu to be fired as gasoline prices climb. On Tuesday, Gingrich released an ad highlighting Chu’s September 2008 statement (retracted since he became head of the Energy Department) that he’d like to see gasoline prices at similar levels to Europe’s and his support for the Chevrolet Volt.
Gingrich — who competes against Romney, Rick Santorum and Ron Paul on Tuesday in the Illinois Republican primary — has touted a plan to bring gasoline prices down to $2.50 a gallon if elected president. The White House has criticized that plan as unrealistic.
Obama has said that there’s little that can be done from Washington in the short term to lower gasoline prices and that there’s no “silver bullet” to bring them down in a global market.
Warmongering Fools
Obama is essentially correct when he says “no silver bullet” on energy prices. Moreover, Gingrich is a fool if he really believes he can bring prices down that low without other devastating consequences such as a massive recession and 13% unemployment.
Finally, the leading Republican warmongers are angling for war with Iran, something sure to send oil prices to new highs should it happen. With $trillion deficits as far as the eye can see, the last thing the US needs to do is start another idiotic war, one likely to cause a supply shock sending gasoline prices over $5 if not much higher.
If you want a good reason for high gas prices, you can blame six things
Fed policies – The Fed and its supporters in both political parties are to blame
Fractional Reserve Lending – The Fed is to blame
US Policy in the Mideast – Republicans other than Ron Paul will make matters worse
Deficit spending – both political parties are to blame
Warmongering – both political parties are to blame
Peak Oil
Drill Baby Drill is an inane response to those fundamental problems.
Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
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20th March 2012 at 10:22 am
Maddie's Mom says:
Admin posted:
“Saudi Arabia Aims to Deliver “Wall of Oil” to US”
It’s good to have friends.
Anyone else feeling warm and fuzzy?
(lol)
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20th March 2012 at 11:35 am
Maddie's Mom says:
I’d like to see that “wall of oil” on one of those ship traffic maps as it heads our way.
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20th March 2012 at 11:38 am
Mary Malone says:
@Admin- Something is hewing and we can feel it in our bones.
Absolutely – We’re hustling to get ready for the crash. Really wish we had more cash and more time. I wish more of my friends and family had listened to us – with time so short we decided to take care of ourselves and hope for the best. Doing a major water, basics run this weekend.
God, how did it get so awful so fast?
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20th March 2012 at 8:38 pm
Zara says:
I just want to say that the only reason I hang here is because profane language is encouraged. You fucks depress me.
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20th March 2012 at 4:04 am
Thinker says:
Iran says could hit U.S. if it came under attack: paper
Reuters – 1 hr 10 mins ago
DUBAI (Reuters) – The United States would not be safe from retaliation if Iran is attacked by Washington, the Iran newspaper quoted a senior Revolutionary Guards commander on Tuesday as saying.
“In the face of any attack, we will have a crushing response. In that case, we will not only act in the boundaries of the Middle East and the Persian Gulf, no place in America will be safe from our attacks,” Massoud Jazayeri was quoted as saying by the daily.
Iran would not strike any country first, he said.
Tehran is locked in a dispute with the West over its nuclear program.
Israel and the United States have threatened military action against Iran unless it abandons activities which the West suspects are intended to develop nuclear weapons.
Further talks between Iran and world powers are expected to take place this month in an attempt to reach a compromise.
The most recent talks failed in January 2011 after Iran refused to suspend its sensitive uranium enrichment work, as demanded by several U.N. resolutions.
Tehran says its nuclear work is peaceful and it has the right to develop its program under the nuclear Non-Proliferation Treaty.
“America, the Zionists and reactionary Arabs should pay attention that we will seriously confront them wherever the Islamic Republic’s interests are threatened,” Jazayeri said, according to Iran daily.
Iranian officials have warned that the Islamic Republic’s response to any military strike would be painful and has said it could close the oil shipping thoroughfare the Strait of Hormuz.
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20th March 2012 at 12:59 pm
Drowning in Parasitism says:
I, for one, would like to see how many Billions of barrels-of-oil we’ve squandered in our elites’ endless quest for ethnic cleansing and warmongering in the Middle East and now Africa to secure “our interests” of coveted oil assets.
Anyone else see the irony here?
Oh yeah… slap the euphemisms of “exporting democracy unto the barbarians of the world” or “pro-active defense” (attack THEM in case they attack US FIRST) into the volatile mix, and the dumb-ass sheeple take the bait every time. Without fail.
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20th March 2012 at 2:10 pm
Persnickety says:
We had to burn all the oil to save it.
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20th March 2012 at 2:13 pm