Russia And China Prepare To Ditch Dollar In Bilateral Trade

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In a time when many nations have gone public with their intention to ditch the dollar in part or in whole, in bilateral trade with non-US counterparts, either to prevent the US from having “veto power” of commerce courtesy of SWIFT or simply in response to Trump’s “America First” doctrine, attention has long focused on Russia and China – the two natural adversaries to the US – to see if and when they would accelerate plans for de-dollarization. Continue reading

Saudi Arabia Calls The End Of Russia’s Oil Prowess

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Saudi Arabia has not only called the end of Russia’s prominence as a global oil behemoth, but anticipates that Russia’s oil exports “will have declined heavily if not disappeared” within the next 19 years, Mohammed bin Salman said in a recent interview with Bloomberg. Continue reading

Venezuela Ditches US Dollar, Will Use Euros For International Trade

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Venezuela has just taken the next step in its quest to “free” itself from the tyranny of US dollar hegemony. One year after the country said it would stop accepting US dollars as payment for its (ever shrinking) oil exports (saying the country’s state-run oil company would accept payment in yuan instead), Venezuelan Vice President for Economy Tareck El Aissami said Tuesday that Venezuela will officially purge the dollar from its exchange market in favor of euros. Continue reading

Saudis Vow to Retaliate if ‘Punished’ for Khashoggi Disappearance

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(Photo Credit: Common Action Forum/Twitter)

 

The kingdom has effectively threatened to cut off oil supplies if it is sanctioned.

As many countries around the world have rallied to say they will punish Saudi Arabia if it is found to have been involved in the disappearance and possible death of dissident journalist Jamal Khashoggi, the kingdom vowed it would retaliate against any such action. Continue reading

The Anti-Silk Road

BERLIN/BEIJING (Own report) – At this week’s Asia-Europe Meeting in Brussels, the EU will introduce a new “connectivity strategy” to counter China’s “New Silk Road.” As outlined by the EU’s head of foreign policy in September, the strategy is aimed at improving transportation infrastructure as well as digital and energy networks linking Asia and Europe. Beijing is also active in these domains in connection with its Silk Road initiative. Recently, Germany’s Ministry of Foreign Affairs launched an initial thrust in this project. At the time, Minister of State Niels Annen (SPD) declared in Uzbekistan that social standards and human rights are “priorities” for Brussels. “This is what makes our offer different from China’s Belt and Road initiative.” For years, Germany had supported – even with military assistance – the Uzbek regime that was applying torture. Washington has also launched a new infrastructure initiative in Asia, to which US Secretary of State Mike Pompeo declared that the USA is committed to “honest accords” and would “never seek dominance over the Indo-Pacific.” Continue reading

A New Era for the China-Russia-U.S. Triangle

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Nearly a half-century ago, President Richard Nixon’s secretary of state, Henry Kissinger, established a successful U.S. strategy for dealing with America’s two most dangerous rivals. He sought closer ties to both the Soviet Union, with its more than 7,000 nuclear weapons, and Communist China, with the world’s largest population.

Kissinger’s approach was sometimes called “triangulation.” But distilled down to its essence, the phrase meant ensuring that China and Russia were not friendlier to each other than each was to the United States

Given that the Soviet Union was much stronger than China at the time, Kissinger especially courted Beijing. Continue reading

‘Man-made crisis’: Venezuelan hell destabilizes region

Venezuelan refugees line up for food donations at Simon Bolivar Square in Boa Vista, Brazil. / Andre Coelho / Bloomberg

 

UNITED NATIONS — It didn’t have to be this way. An oil rich, economically prosperous middle class country, once a stable Latin American democracy, is disintegrating into a socialist dystopia plagued by hunger, corruption, hyper-inflation and churning political unrest.

While petroleum remains Venezuela’s major export, now tragically it’s the people too who are fleeing this twice California sized country. Continue reading

U.S. Crude Oil Exports Could Jump To Almost 4 Million Bpd By 2020

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U.S. crude oil exports could increase to 3.9 million bpd by 2020, mostly driven by rising production in the Permian, the Houston Chronicle reported on Tuesday, citing a new report by S&P Global Platts.

U.S. crude oil exports are expected to reach 2.2 million bpd next year, according to the estimates. Continue reading

A New Era Of Geopolitical Risk In Global Oil Markets

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Amid never ending talk and speculation over how many more barrels of Iranian oil will be removed from global markets once sanctions slated to hit Iran’s oil production on November 6 take effect, some are claiming that geopolitical factors have driven the market just as much as supply fundamentals.

At Russia Energy Week in Moscow last week, both Saudi and Russian energy ministers said they see rising geopolitical risk as driving the recent oil price increase at a time when there is sufficient supply in the market. Of course, the notion of sufficient supply will be tested soon, as will both Saudi Arabia’s and OPEC’s spare production capacity will be called on to maintain this supply. Continue reading

Saudi Arabia And Russia Make Secret Oil Deal

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Are Saudi Arabia and Russia helping Trump out by agreeing to increase oil production?

A new report from Reuters says that Russia and Saudi Arabia “struck a private deal” in September to increase production in order to suppress oil prices. Intriguingly, the pair apparently phoned the U.S. before the Algiers meeting in late September to relay the details of their plan.

The report is an indication that Saudi Arabia was trying to respond to pressure from President Trump to lower oil prices. If the White House was informed about the secret private deal, it didn’t seem to resolve Trump’s concerns. Continue reading

Trump To Saudi King: “You Wouldn’t Last Two Weeks Without Us”

 

One week after President Trump accused Saudi Arabia of deliberately conspiring to drive up oil prices during his speech before the United Nations General Assembly, the president stepped up his rhetoric against America’s most important strategic ally in the Middle East during a rally in Southaven Mississippi Tuesday night, implying that the US could withdraw the military protection it provides to the kingdom and warning that the Saudi regime that it wouldn’t survive for “two weeks” without US support. Continue reading

US Hints At Naval Blockade Of Russian Energy Exports Which Moscow Warns Would Be “An Act Of War”

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Interior Secretary Ryan Zinke speaking at an industry event on Friday. Image source: State Impact Pennsylvania

 

In a interview about fracking and the implications of making the United States less dependent on foreign sources of energy, Interior Secretary Ryan Zinke told the Washington Examiner that the US Navy has the ability to blockade Russia from controlling energy supplies in the Middle East.

“The United States has that ability, with our Navy, to make sure the sea lanes are open, and, if necessary, to blockade… to make sure that their energy does not go to market,” Zinke said on Friday at a Consumer Energy Alliance event in Pittsburg.  Continue reading

The Transatlantic Liquefied Gas Dispute

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BERLIN/WASHINGTON (Own report) – German Foreign Minister Heiko Maas has once again reaffirmed that the German government insists on continuing with the highly controversial Nord Stream 2 gas pipeline. Despite persistent pressure from Washington, there will be no interference in the construction of the pipeline – which has long since begun – reiterated Maas at this years annual UN General Assembly in New York. At the same time, US efforts to promote the sale of US liquefied gas to Germany are stagnating. If the liquefied gas would be priced closer to the currently much cheaper pipeline gas, it could certainly be considered, according to the Uniper company (formerly EON). Uniper is currently contemplating the construction of a liquefied gas terminal in Wilhelmshaven. However, it would not even have one-fifth of the import capacity of Nord Stream 2. Plans for constructing a terminal in Brunsbüttel, which currently have the best chances of implementation, envisage the importation of only half as much LNG – primarily to fuel ships and trucks. Continue reading

World upside down as EU and Russia unite against US

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EU refused to be ‘pushed around by the unilateral decisions of our US allies’, France’s Emmanuel Macron said (Photo: Consilium)

 

The UN general assembly in New York, the world’s largest diplomatic event, turned into a show of EU solidarity with Russia and China against the US on Tuesday (25 September).

The development, which came about over Iran, symbolised a world-turned-upside-down by US leader Donald Trump’s unilateralism.

It left Mike Pompeo, Trump’s foreign policy chief, “disturbed and indeed deeply disappointed”. Continue reading

EU, Iran agree to create ‘special vehicle’ to maintain trade

Iran has said it will not accept any attempts to halt country’s oil exports (Reuters)

 

To keep nuclear deal intact, EU establishes legal mechanism to keep trade with Iran, including in oil

The remaining parties to the Iran nuclear deal said on Monday that they agreed to continue work to create a special mechanism to maintain trade with Iran, including in oil, following the US withdrawal from the 2015 pact.

Continue reading