The attack on Saudi oil facilities raises the risks of war

www.economist.com
Middle East and AfricaSep 16th 2019
5-7 minutes
PRESIDENT DONALD TRUMP says America’s forces are “locked and loaded” to strike at those responsible for the devastating drone and missile attacks on Saudi Arabia’s industry on September 14th. Is he about to pull the trigger for another American war in the Middle East?

Responsibility for the strikes on the Khurais oilfield and the Abqaiq oil-processing facility—the biggest such plant in the world—was claimed by Iranian-backed Houthi rebels fighting a Saudi-led coalition in the war in Yemen. But American officials dismissed this notion. Not only was the weaponry involved made in Iran, they say. They also believe the attacks had come not from the south-east of the Arabian peninsula, ie, Yemen, but the north, from Iraq, where Iran runs proxy Shia militias; or indeed from the territory of Iran itself. “Iran has now launched an unprecedented attack on the world’s energy supply,” tweeted Mike Pompeo, the secretary of state. “There is no evidence the attacks came from Yemen.”

Abu Dhabi’s Plowing Ahead With These 10 Mega Projects During an Oil Slump

Abu Dhabi is building $37 billion worth of projects, including a Louvre and a new airport terminal, despite the oil slump.
Bloomberg

by Zainab Fattah
2 Απριλίου 2017, 9:12 π.μ. EEST
Abu Dhabi, which sits on about 6 percent of the world’s oil reserves, has pushed ahead with a construction program that began before crude prices slumped in 2014. From Louvre Abu Dhabi, a new airport terminal and a nuclear power plant, here are the 10 biggest projects underway in the sheikdom. With a combined value of 134 billion dirhams ($37 billion), they're expected to be completed by 2020, according to a list provided by the government this month in response to questions from Bloomberg.

Oil edges up on threat of U.S. issuing new Iran sanctions

Fri Feb 3, 2017 | 2:23am EST

Reuters

By Keith Wallis and Osamu Tsukimori | SINGAPORE/TOKYO
Oil prices edged up on Friday on news that U.S. President Donald Trump could be set to impose new sanctions on multiple Iranian entities, firing geopolitical tensions between the two nations.

Comments by Russian energy minister Alexander Novak that oil producers had cut their output in accordance with a pact agreed in December also helped support prices, analysts said.

Reuters reported on Thursday that Trump's administration is prepared to roll out new measures against more than two dozen Iranian targets following Tehran's ballistic missile test, according to sources familiar with the matter.

Saudi Arabia to Offer International Investors $17.5 Billion in Bonds

Gulf countries are increasingly raising funds through international markets

The Wall Street Journal

By NICOLAS PARASIE and  CHRISTOPHER WHITTALL
Oct. 19, 2016 7:27 a.m. ET
0 COMMENTS
DUBAI—Saudi Arabia plans to raise up to $17.5 billion by selling bonds for the first time to international investors this week, two people aware of the transaction said Wednesday.

The kingdom also tightened its pricing guidance for the potential multi-tranche issue, which along with the estimated issue size reflects a strong appetite for the potential issue, bankers say.

For the five-year tranche, Saudi Arabia said it would pay around 140 basis points above U.S. Treasurys, compared with an initial guidance of around 160 basis points above U.S. Treasurys.

What Russia's Failing Economy Means For Putin's Legacy And Military Ambitions

The WorldPost spoke with Sergey Aleksahenko, former deputy chairman of the Russian Central Bank.
 02/20/2016 08:01 am ET | Updated 2 hours ago

THe Huffington Post

The World Post


Alexandra Ma
Editorial Fellow, The Huffington Post


Russia is in the middle of its worst economic crisis since 2008.

The country's economic output declined by 3.7 percent in 2015 and is projected to decrease by a further 1 percent in 2016, according to International Monetary Fund estimates published in January. Inflation soared to 15.4 percent in 2015, compared with 7.8 percent in 2014.

The decline is partly the result of the international sanctions imposed following Russia's annexation of Crimea in March 2014. Large trade and investment partners, including the European Union and the United States, cut off Russia's access to foreign loans and capital markets and froze assets belonging to high-level Russians.

BofA: The Oil Crash Is Kicking Off One of the Largest Wealth Transfers In Human History

A $3 trillion shift year from oil producers to global consumers.

 Joe Weisenthal

 TheStalwart

February 1, 2016 — 4:49 AM EET

Bloomberg

Economists are still hotly debating whether the oil crash has been a net positive for advanced economies.

Optimists argue that cheap oil is a good thing for consumers and commodity-sensitive businesses, while pessimists point to the hit to energy-related investment and possible spillover into the financial system.

A new note from Francisco Blanch at Bank of America Merrill Lynch, however, puts the oil move into a much bigger perspective, arguing that a sustained price plunge "will push back $3 trillion a year from oil producers to global consumers, setting the stage for one of the largest transfers of wealth in human history."

Blanch and his team already see evidence that the fall in the price of crude is having a positive impact on demand, and say that it could accelerate even further if prices don't pick up.

Gold Rises to Highest Since October as U.S. Rate Outlook Weighed

By Laura Clarke and Glenys Sim  Jan 13, 2015 12:23 PM GMT+0200

Bloomberg

Gold extended gains to the highest in almost 12 weeks as investors assessed the timing of higher borrowing costs and the strength of the U.S. economy amid slumping oil prices. Silver climbed to a four-week high.

Bullion rose for a third day after U.S. data last week showed falling incomes even as hiring accelerated. Fed Bank of San Francisco President John Williams has said raising rates in June would be a close call amid “strong momentum” in the labor market and weaker wage gains.

Russia Interventions Cross $3 Billion as Rate Bets Surge on Oil

By Vladimir Kuznetsov  Oct 10, 2014 1:44 PM GMT+0300

Bloomberg

Russia’s currency interventions have exceeded $3 billion this month as sanctions and an oil-price slump batter the ruble, boosting bets policy makers will raise interest rates to stem the drop.

The central bank sold $1.5 billion on Oct. 8, according to data on its website today, the most for a single day since a $4.41 billion intervention that preceded the Crimea referendum to join Russia in March. Wagers for interest-rate increases soared to a six-year high as Brent oil’s slide to four-year lows sent the ruble sliding further past 40 per dollar.

Ruble Rout Pounding Russia’s Retailers as Prices Soar

By Matthew Campbell and Ilya Khrennikov  Oct 10, 2014 11:53 AM GMT+0300

Bloomberg

The generally upbeat story -- and current hardship -- of Russia’s middle class since the end of the Cold War can be partly told through Dixy Group.

UPDATE 3-Oil pressured by Cyprus worries

Tue Mar 26, 2013 5:34am EDT

* Euro zone faces tough banking regime after deal -official

* Brent-WTI spread over $13, up from narrowest since July

* Coming Up: API oil inventory data; 2030 GMT (Updates throughout, changes dateline from SINGAPORE)

By Simon Falush

LONDON, March 26 (Reuters) - Brent oil fell slightly on Tuesday, remaining within its range of the past two weeks, as the effect of the Cyprus bailout faded and traders saw little direction for the market.

Brent crude futures slipped 8 cents to $108.08 a barrel by 0932 GMT, in the middle of its recent $107 to $109 range. U.S. crude gained 40 cents to $95.21.