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Anorak | Oil Wars: Saudi Arabian Terror And Obama’s Subservience Are At The Heart Of The IS Crisis

Oil Wars: Saudi Arabian Terror And Obama’s Subservience Are At The Heart Of The IS Crisis

by | 13th, October 2014

The President of the USA Barack Obama bows to King Abdullah of Saudi Arabia, before the official G20 photocall with the Queen at Buckingham Palace. Picture date: Wednesday April 1, 2009.

IS Saudi Arabia at the heart of the IS crisis?

Last year, Syria’s Bashar al-Assad was the enemy. He had crossed Barack Obama’s “red line”, the President of America reasoning that shooting people in the face was not as bad as poisoining them.

The Saudis want Assad gone.

The WSJ noted a deal:

When Mr. Kerry [US Secretary of State JohnKerry]  touched down in Jeddah to meet with King Abdullah on Sept. 11, he didn’t know for sure what else the Saudis were prepared to do. The Saudis had informed their American counterparts before the visit that they would be ready to commit air power—but only if they were convinced the Americans were serious about a sustained effort in Syria. The Saudis, for their part, weren’t sure how far Mr. Obama would be willing to go, according to diplomats.

The US needed a big Arab ally to get ISIS. So:

The Americans knew a lot was riding on a Sept. 11 meeting with the king of Saudi Arabia at his summer palace on the Red Sea. A year earlier, King Abdullah had fumed when President Barack Obama called off strikes against the regime of Syria’s Bashar al-Assad. This time, the U.S. needed the king’s commitment to support a different Syrian mission—against the extremist group Islamic State—knowing there was little hope of assembling an Arab front without it.

At the palace, Secretary of State John Kerry requested assistance up to and including air strikes, according to U.S. and Gulf officials. “We will provide any support you need,” the king said.

The US is not calling the shots:

Wary of a repeat of Mr. Obama’s earlier reversal, the Saudis and United Arab Emirates decided on a strategy aimed at making it harder for Mr. Obama to change course. “Whatever they ask for, you say ‘yes,'” an adviser to the Gulf bloc said of its strategy. “The goal was not to give them any reason to slow down or back out.”

Arab participation in the strikes is of more symbolic than military value. The Americans have taken the lead and have dropped far more bombs than their Arab counterparts. But the show of support from a major Sunni state for a campaign against a Sunni militant group, U.S. officials said, made Mr. Obama comfortable with authorizing a campaign he had previously resisted.

But what do the Saudis want? Why do they despise Assad?

For the Saudis, Syria had become a critical frontline in the battle for regional influence with Iran, an Assad ally. As Mr. Assad stepped up his domestic crackdown, the king decided to do whatever was needed to bring the Syrian leader down, Arab diplomats say. In the last week of August, a U.S. military and State Department delegation flew to Riyadh to lay the ground for a military program to train the moderate Syrian opposition to fight both the Assad regime and Islamic State—something the Saudis have long requested. The U.S. team wanted permission to use Saudi facilities for the training. Top Saudi ministers, after consulting overnight with the king, agreed and offered to foot much of the bill. Mr. Jubeir went to Capitol Hill to pressed key lawmakers to approve legislation authorizing the training.

But it’s got a lot to do with oil, wich is power:

Anadolu Agency explains how SAudi Arabia seeks to damage OPEC:

Opec

 

 

And:

Saudi Arabia will force the price of oil down, in an effort to put political pressure on Iran and Russia, according to the President of Saudi Arabia Oil Policies and Strategic Expectations Center.

Saudi Arabia plans to sell oil cheap for political reasons, one analyst says.

To pressure Iran to limit its nuclear program, and to change Russia’s position on Syria, Riyadh will sell oil below the average spot price at $50 to $60 per barrel in the Asian markets and North America, says Rashid Abanmy, President of the Riyadh-based Saudi Arabia Oil Policies and Strategic Expectations Center. The marked decrease in the price of oil in the last three months, to $92 from $115 per barrel, was caused by Saudi Arabia, according to Abanmy.

With oil demand declining, the ostensible reason for the price drop is to attract new clients, Abanmy said, but the real reason is political. Saudi Arabia wants to get Iran to limit its nuclear energy expansion, and to make Russia change its position of support for the Assad Regime in Syria. Both countries depend heavily on petroleum exports for revenue, and a lower oil price means less money coming in, Abanmy pointed out. The Gulf states will be less affected by the price drop, he added.

The Organization of the Petroleum Exporting Countries, which is the technical arbiter of the price of oil for Saudi Arabia and the 11 other countries that make up the group, won’t be able to affect Saudi Arabia’s decision, Abanmy maintained.

The organization’s decisions are only recommendations and are not binding for the member oil producing countries, he explained.

So. The price of oil falls. With Syria is turmoil any slack is taken up by the Saudis, who demand customers buy the maximum shipments or get nothing.

The Wall Street Journal  a gain:

Days after slashing prices in Asia, Saudi Arabia is now making an aggressive push in the European oil market, traders say. The kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude. “The Saudi push is not just in Asia. It’s a global phenomenon,” one oil trader said. “They are using very aggressive tactics” in Europe too, the trader added.

This month, state-owned Saudi Aramco stunned the rest of the Organization of the Petroleum Exporting Countries by slashing its November prices to defend its market share in Asia’s growing market. The move, setting a price war in the oil-production group, was combined with a boost in the kingdom’s output in September.

But Riyadh is also moving to protect its sales to Europe, a declining market where it is facing rivalry from returning Libyan production. After cutting its November prices there, Saudi Aramco is also asking refiners to commit to full, fixed deliveries in talks to renew contracts for next year, the traders say. They say the Saudi oil company had previously offered a

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