Tuesday, October 6, 2015

"Is Russia Plotting To Bring Down OPEC?" Saudi Clerics Declare Jihad On Russia

First up, SafeHaven:
...In addition, Russia's deputy prime minister in charge of energy policy, Arkady Dvorkovich, in the beginning of September made comments that, in tone and substance, mocked Saudi policy, saying that "OPEC producers are suffering the ricochet effects of their attempt to flush out rivals by flooding the world with excess output," expressing doubt that OPEC members "really want to live with low oil prices for a long time," and implying that Saudi policy is irrational.

Indeed, Russia can be seen as maneuvering to split OPEC into two blocs, with Russia, although not a member, persuading the "Russian bloc" to isolate Saudi Arabia and the Gulf Arab OPEC members within OPEC. This might persuade the Saudis to seek a compromise with the have nots.

A strategic alliance with Iran and Iraq offers Putin two more potential avenues to pressure the Saudis. They can test Saudi determination to defend their market share at any price and its wherewithal financially to do so. Iran claims it can raise crude output by one million barrels within six or so months of the lifting of sanctions. The Saudis may be calculating that Iran must first rehabilitate its oil fields and that Iran, cash poor, cannot do so quickly. If this is the case, Russia could step in, offer Iran financing, and force the Saudis to contemplate prices staying lower longer than they anticipated and therefore continuing pressure on their economy.

Russia also could cooperate with Iran and Iraq to take market share from Saudi Arabia in the vital Chinese market. As a recent Bloomberg article pointed out, Saudi Arabia, Iran, Russia, Iraq and other countries are vying intensely for sales to China, the second largest import market and the major source of demand growth in coming years. Coordinating their pricing and consistently offering the Chinese prices below the Saudi price, they could seek to win market share. Such a price war would pressure the competitors' currencies....MORE
While al-Arabiya reports:

52 Saudi clerics, scholars call to battle Russian forces in Syria
Fifty two Saudi inciters, both academics and clerics, have called on the public to “hurry” to Syria where they should be fighting Russian forces. 
The clerics, some of which are members of the International Union of Muslim Scholars, called on “all those who are able, and outside of Saudi Arabia, to answer the calls of jihad” and to fight alongside one of the extremist groups facing Russian forces. 
According to experts, by issuing this statement, inciters seek to implicate Saudi, Gulf, and Muslim youths in the fight against Russian forces, mirroring Al-Qaeda’s and the Taliban’s recruitment of young fighters during the Afghan-Soviet war....

Meanwhile the propagandists at RT report:
Russian Air Force destroys 20 ISIS tanks near Palmyra – Defense Ministry (VIDEOS)
Which of course raises the question: WTF? If the U.S. has been bombing ISIS for a year how do the head-choppers still have any tanks? Weren't we targeting the tanks? Seriously, Whisky, Tango, Foxtrot?