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Tue, 25th April 2017

Anirudh Sethi Report

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Archives of “saudi arabia” Tag

Big OPEC producers want $60 oil – report

WSJ says target price raised

  • Iraq oil minister: “Iraq wants prices to rise to $60. This our aim”
  • WSJ says Saudis and Kuwait also targeting $60

The WSJ is out with a story that’s bullish for oil. They say main producers had been seeking $55 per barrel but now want $60. They believe that level will boost their economies without attracting too much US shale drilling.

The higher price target suggests they will support an extension of quotas at meetings scheduled for the end of May.

The target is symbolic, the WSJ says, but “offers a window into how serious they are about using their supply power to affect the market.”

The big upcoming event is the Saudi Aramco IPO and that’s what is motivating the discipline from the Kingdom.

“They need this price [$60] for the IPO of Saudi Aramco,” a person familiar with Saudi oil policy told the WSJ.

Welcome To Londonistan: 423 New Mosques; 500 Closed Churches

  • British multiculturalists are feeding Islamic fundamentalism. Muslims do not need to become the majority in the UK; they just need gradually to Islamize the most important cities. The change is already taking place.
  • British personalities keep opening the door to introducing Islamic sharia law. One of the leading British judges, Sir James Munby, said that Christianity no longer influences the courts and these must be multicultural, which means more Islamic. Rowan Williams, the former Archbishop of Canterbury, and Chief Justice Lord Phillips, also suggested that the English law should “incorporate” elements of sharia law.
  • British universities are also advancing Islamic law. The academic guidelines, “External speakers in higher education institutions”, provide that “orthodox religious groups” may separate men and women during events. At the Queen Mary University of London, women have had to use a separate entrance and were forced to sit in a room without being able to ask questions or raise their hands, just as in Riyadh or Tehran.

“London is more Islamic than many Muslim countries put together”, according to Maulana Syed Raza Rizvi, one of the Islamic preachers who now lead “Londonistan“, as the journalist Melanie Phillips has called the English capital. No, Rizvi is not a right-wing extremist. Wole Soyinka, a Nobel Laureate for Literature, was less generous; he called the UK “a cesspit for Islamists”.

“Terrorists can not stand London multiculturalism”, London’s mayor Sadiq Khan said after the recent deadly terror attack at Westminster. The opposite is true: British multiculturalists are feeding Islamic fundamentalism. Above all, Londonistan, with its new 423 mosques, is built on the sad ruins of English Christianity.

US to ban large electronic devices on flights from 8 Middle Eastern nations

Airline passengers traveling from eight Middle Eastern nations, including Jordan and Egypt, will be barred from carrying large electronic devices into the main cabin under new regulations from the Trump administration.

The new rules, which come into effect on Tuesday, also apply to Saudi Arabia and the United Arab Emirates, according to a US official. Passengers from the eight countries will have to check laptop computers and other large devices, such as tablets, into the hold on all flights bound for airports in the US. But the restrictions will not apply to flights leaving the US for the same countries, according to the official, who requested anonymity.

The move marks the latest attempt by the Trump administration to tighten security after Mr Trump vowed during the presidential race to do more to tackle terrorism. It comes one week after his administration issued a revised travel ban that temporarily bars citizens of seven largely Muslim countries from entering the US. The revised order, like the first one, has been blocked by the courts, preventing implementation for the time being.

Oil Shorts Soar By 2nd Most In History As OPEC Hope Fades

During a week that saw WTI crude prices erase all post-OPEC-production-cut-deal gains, after the Saudis admitted ‘cheating’ (but rapidly back-pedalled), oil speculators added almost 80,000 contracts to their short positions – the 2nd most in 34 years.

This surge in shorts reduced the massive record net long crude positioning by the 2nd most in history – but clearly it remains extremely one-sided still…

Trump and Saudi Prince discussed new investments worth more than $200B – White House

White House on yesterday’s meeting

Saudi Arabia hailed yesterday’s meeting as a “historical turning point” in relations with the United States. He met with Deputy Crown Prince Mohammed bin Salman who is the economic power broker in the kingdom.

The White House said they discussed development of a new US-Saudi program with initiatives including infrastructure and energy worth potentially more than $200 billion.

Oil – overnight piece says Saudi the biggest OPEC cutters

Just doing a bit of a catch-up, this from Bloomberg overnight on the OPEC supply cuts:

  • Saudi Arabia continued to lead OPEC’s efforts to cut production
  • Organization of Petroleum Exporting Countries’ production fell to 32.17 million barrels a day in February, a 65,000 barrel-a-day drop from January
  • Increases from Iran, Nigeria and Libya (permitted under the terms of the agreement)
  • OPEC’s total output remains 415,000 barrels a day above the target set out in the Nov. 30 deal
  • The group as a whole is only about 70 percent of the way toward the production level it deemed necessary to eliminate a global oversupply and boost prices

 

OPEC Production Cut May Need to Be Extended: Oil Ministers

The oil ministers of Iran and Qatar have suggested that OPEC’s production cut agreement may have to be extended beyond the June deadline, despite an almost 100-percent compliance rate.

The comments come a day after the American Petroleum Institute reported the second-largest crude oil inventory increase in history, at 14.227 million barrels, which added fuel to worries that production cut efforts are not enough to rebalance the market.

US court refuses to immediately restore Trump travel ban

A U.S. appeal court late on Saturday denied a request from the U.S. Department of Justice to immediately restore a immigration order from President Donald Trump barring citizens from seven mainly Muslim countries and temporarily banning refugees.

The court ruling dealt a further setback to Trump, who has denounced the judge in the state of Washington who blocked his executive order on Friday. In tweets and comments to reporters, the president has insisted he will get the ban reinstated.

 Trump says the temporary immigration restrictions on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen, and on all refugees, are necessary to protect the United States from Islamist militants. Critics say they are unjustified and discriminatory.

The judge’s order and the appeal ruling have created what may be a short-lived opportunity for travelers from the seven affected countries to get into the United States while the legal uncertainty continues.

In a brief order, the appeals court said the government’s request for an immediate administrative stay on the Washington judge’s decision had been denied. It was awaiting further submissions from Washington and Minnesota states on Sunday, and from the government on Monday.

The government’s appeal says the decision by judge James Robart in Washington poses an immediate harm to the public, thwarts enforcement of an executive order and “second-guesses the president’s national security judgment about the quantum of risk posed by the admission of certain classes of (non-citizens) and the best means of minimizing that risk”.

Trump denounced the “so-called” judge in a series of tweets on Saturday and told reporters: “We’ll win. For the safety of the country, we’ll win.”

IRAQI FAMILY

The president’s Jan. 27 order has drawn criticism even from U.S. allies and created chaos for thousands of people who have, in some cases, spent years seeking asylum in the United States.

Iraqi Fuad Sharef, together with his wife and three children, spent two years obtaining U.S. visas, and had packed up to move to America last week, but were turned back to Iraq after a failed attempt to board a U.S.-bound flight from Cairo.

Google Tells Offshore Staff To Return To The US After Trump Executive Order

In the immediate aftermath of Trump’s controversial executive order, prohibiting entry into the US of citizens from seven mostly-Muslim nations – Syria, Iraq, Iran, Sudan, Somalia, Yemen and Libya – yet which excludes such nations as Saudi Arabia, Egypt and Turkey in which Trump has done business deals…

… Google issued a stark warning to staff traveling overseas who may be impacted by Trump’s new executive order on immigration: Get back to the U.S. now.

According to Bloomberg, Google CEO Sundar Pichai slammed Trump’s move in a note to employees Friday, telling them that more than 100 company staff are affected by the order. “It’s painful to see the personal cost of this executive order on our colleagues,” Pichai wrote in the memo. “We’ve always made our view on immigration issues known publicly and will continue to do so.” The memo follows a similar statement made on Friday by Facebook Chief Executive Officer Mark Zuckerberg in which he said he was “concerned” by Trump’s recent moves to restrict immigration.

Saudi minister says 1.5 mbpd of oil already removed from market

OPEC and Russia tout progress

Producers have already cut output by 1.5 mbpd, according to Saudi minister of energy Khalid Al-Falih. He said his country along with Kuwait and Algeria have already taken more off the market than required.

Meanwhile, Russian oil minister Novak said progress in cutting Russian production was “ahead of schedule”.

The monitoring committee of OPEC are meeting today and tomorrow. The topic won’t yet be compliance because we’re not yet at the end of the first month of the agreement. Instead, they will talk about how to monitor and measure.

The total amount of oil expected to be removed from the market for six months is 1.8 mbpd. Skeptics argue that much of the ‘cut’ is optics and that countries were producing beyond capacity in the lead-up to the agreement or had scheduled natural/seasonal depletions.

Influential Algerian oil minister Boutarfa repeated a comment from his Saudi counterpart, who said last week that quotas beyond June may not be necessary.

“If we really comply by 80-90%, it may not be necessary to continue,” he said.

WTI crude finished $1.10 higher on Friday to $53.22 but failed in a test of downtrend resistance after a large jump in oil drilling rigs.