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Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

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  • Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

    Hat tip: http://jessescrossroadscafe.blogspot.com/

    http://www.independent.co.uk/news/wo...y-2233666.html

    They're smelling blood all over the Middle East. Palestinians next?

    Saudi Arabia, the world's largest oil producer and the regional domino whose fall the West fears most, yesterday announced that it would ban all protests and marches. The move – the stick to match the carrot of benefits worth $37bn (£23bn) recently offered citizens in an effort to stave off the unrest that has overtaken nearby states – comes before a "day of rage" threatened for this Friday by opponents of the regime.

    The Saudi Interior Ministry said the kingdom has banned all demonstrations because they contradict Islamic laws and social values. The ministry said some people have tried to get around the law to "achieve illegitimate aims" and it warned that security forces were authorised to act against violators. By way of emphasis, a statement broadcast on Saudi television said the authorities would "use all measures" to prevent any attempt to disrupt public order.

    Already, as The Independent reported yesterday, the ruling House of Saud had drafted security forces, possibly numbering up to 10,000, into the north-eastern provinces. These areas, home to most of the country's Shia Muslim minority, have been the scenes of small demonstrations in recent weeks by protesters calling for the release of prisoners who they say are being held without trial. Saudi Shias also complain that they find it much harder to get senior government jobs and benefits than other citizens.

    Not only are the Shia areas close to Bahrain, scene of some potent unrest in recent weeks, but they are also where most of the Saudi oil fields lie. More than two million Shias are thought to live there, and in recent years they have increasingly practised their own religious rites thanks to the Saudi king's reforms.

    But the day of protest called for this Friday was – perhaps still is – likely to attract more than restive Shias in the east. There have been growing murmurs of discontent in recent weeks; protesters have not only been much emboldened by the success of popular uprisings in Tunisia and Egypt, but online channels of communication by those contemplating rebellion have been established. Some estimates indicate that as many as 20,000 were planning to protest in Riyadh, as well as in the east, on Friday.

    The jitters of the Saudi regime will be at least equalled in many parts of the world where sympathy for democracy movements is tempered by a reliance on petrol, which most people – for all the special pleading of the haulage industry – can just about afford. Saudi Arabia sits on a fifth of the world's oil reserves.

    The past week, with conflict disrupting all but a trickle of Libya's oil production, has seen the Brent barrel price climb to $103, with UK pump prices swiftly going up to £1.30 a litre. The rise in the price per barrel was caused not just by the Libyan strife – the country produces only 2 per cent of the planet's oil needs – but also by the prospect of further unrest in the region, although not the threat of full-scale breakdown in Saudi Arabia.

    Yesterday, alarmist voices were not slow to exploit fears. Alan Duncan, an international aid minister and a former oil trader, raised the prospect in an interview with The Times of the price of crude rising well beyond 2008's record of $140 a barrel, to $200 or more.

    "Do you want to be paying £4 a litre for petrol?" he asked. "I've been saying in government for two months that if this does go wrong, £1.30 at the pump could look like luxury." He outlined a "worst-case scenario" in which serious regional upheaval could propel the price to $250 a barrel, and thence to British drivers paying £2.03 a litre. London is now considering not imposing the planned 1p rise in fuel duty.

  • #2
    Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

    I feel the need to stick my fingers in my ears while yelling "LALALALA" at this point. At what point do cities and states start being hurt by gas prices? Are they going to have to reduce police patrols or are gas costs a small portion of their budgets?

    Comment


    • #3
      Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

      Saudis mobilise thousands of troops to quell growing revolt

      By Robert Fisk, Middle East Correspondent





      Saturday, 5 March 2011

      Saudi Arabia was yesterday drafting up to 10,000 security personnel into its north-eastern Shia Muslim provinces, clogging the highways into Dammam and other cities with busloads of troops in fear of next week's "day of rage" by what is now called the "Hunayn Revolution".

      Saudi Arabia's worst nightmare – the arrival of the new Arab awakening of rebellion and insurrection in the kingdom – is now casting its long shadow over the House of Saud. Provoked by the Shia majority uprising in the neighbouring Sunni-dominated island of Bahrain, where protesters are calling for the overthrow of the ruling al-Khalifa family, King Abdullah of Saudi Arabia is widely reported to have told the Bahraini authorities that if they do not crush their Shia revolt, his own forces will.

      The opposition is expecting at least 20,000 Saudis to gather in Riyadh and in the Shia Muslim provinces of the north-east of the country in six days, to demand an end to corruption and, if necessary, the overthrow of the House of Saud. Saudi security forces have deployed troops and armed police across the Qatif area – where most of Saudi Arabia's Shia Muslims live – and yesterday would-be protesters circulated photographs of armoured vehicles and buses of the state-security police on a highway near the port city of Dammam.

      Although desperate to avoid any outside news of the extent of the protests spreading, Saudi security officials have known for more than a month that the revolt of Shia Muslims in the tiny island of Bahrain was expected to spread to Saudi Arabia. Within the Saudi kingdom, thousands of emails and Facebook messages have encouraged Saudi Sunni Muslims to join the planned demonstrations across the "conservative" and highly corrupt kingdom. They suggest – and this idea is clearly co-ordinated – that during confrontations with armed police or the army next Friday, Saudi women should be placed among the front ranks of the protesters to dissuade the Saudi security forces from opening fire.

      If the Saudi royal family decides to use maximum violence against demonstrators, US President Barack Obama will be confronted by one of the most sensitive Middle East decisions of his administration. In Egypt, he only supported the demonstrators after the police used unrestrained firepower against protesters. But in Saudi Arabia – supposedly a "key ally" of the US and one of the world's principal oil producers – he will be loath to protect the innocent.

      So far, the Saudi authorities have tried to dissuade their own people from supporting the 11 March demonstrations on the grounds that many protesters are "Iraqis and Iranians". It's the same old story used by Ben Ali of Tunisia and Mubarak of Egypt and Bouteflika of Algeria and Saleh of Yemen and the al-Khalifas of Bahrain: "foreign hands" are behind every democratic insurrection in the Middle East.

      US Secretary of State Hillary Clinton and Mr Obama will be gritting their teeth next Friday in the hope that either the protesters appear in small numbers or that the Saudis "restrain" their cops and security; history suggests this is unlikely. When Saudi academics have in the past merely called for reforms, they have been harassed or arrested. King Abdullah, albeit a very old man, does not brook rebel lords or restive serfs telling him to make concessions to youth. His £27bn bribe of improved education and housing subsidies is unlikely to meet their demands.

      An indication of the seriousness of the revolt against the Saudi royal family comes in its chosen title: Hunayn. This is a valley near Mecca, the scene of one of the last major battles of the Prophet Mohamed against a confederation of Bedouins in AD630. The Prophet won a tight victory after his men were fearful of their opponents. The reference in the Koran, 9: 25-26, as translated by Tarif el-Khalidi, contains a lesson for the Saudi princes: "God gave you victory on many battlefields. Recall the day of Hunayn when you fancied your great numbers.

      "So the earth, with all its wide expanse, narrowed before you and you turned tail and fled. Then God made his serenity to descend upon his Messenger and the believers, and sent down troops you did not see – and punished the unbelievers." The unbelievers, of course, are supposed – in the eyes of the Hunayn Revolution – to be the King and his thousand princes.

      Like almost every other Arab potentate over the past three months, King Abdullah of Saudi Arabia suddenly produced economic bribes and promised reforms when his enemy was at the gates. Can the Arabs be bribed? Their leaders can, perhaps, especially when, in the case of Egypt, Washington was offering it the largest handout of dollars – $1.5bn (£800m) – after Israel. But when the money rarely trickles down to impoverished and increasingly educated youth, past promises are recalled and mocked. With oil prices touching $120 a barrel and the Libyan debacle lowering its production by up to 75 per cent, the serious economic – and moral, should this interest the Western powers – question, is how long the "civilised world" can go on supporting this nation?

      This week's protests in the kingdom will affect us all – but none more so than the supposedly conservative and definitely hypocritical pseudo-state, run by a company without shareholders called the House of Saud.

      http://www.independent.co.uk/news/wo...t-2232928.html

      Comment


      • #4
        Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests


        Cozy, no. . . .

        Comment


        • #5
          Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

          Potential major history going on here. Wake up America! Changes are coming.

          Comment


          • #6
            Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

            Originally posted by c1ue View Post
            Hat tip: http://jessescrossroadscafe.blogspot.com/

            http://www.independent.co.uk/news/wo...y-2233666.html

            They're smelling blood all over the Middle East. Palestinians next?
            Bloomberg put out an article about $200 call options expiring on May 17th. This now puts EIA's upper 95% confidence limit too narrow for the range of reality. I noticed it went up on 2/3 - I would guess that with this sort of positive feedback, $140 should replace the $120 in C1ue's title.

            Either way, the next outlook arrives tomorrow. Stay tuned...here it is:




            Last edited by dcarrigg; March 08, 2011, 12:14 PM.

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            • #7
              Re: Here comes the big one: Oil to $120, gold to $1500, silver to $42 - Saudi Arabia facing large public protests

              Originally posted by Kadriana View Post
              I feel the need to stick my fingers in my ears while yelling "LALALALA" at this point. At what point do cities and states start being hurt by gas prices? Are they going to have to reduce police patrols or are gas costs a small portion of their budgets?
              If police departments are forced to cut back policing because of petroleum expense I suppose it depends on the city - some cities might be police-able with reasonable wait times by foot & bike patrols. Probably large parts of New York, London, Tokyo, downtown Toronto, Singapore ... It's the suburbs & ex-urbs that may suffer much more crime.

              From the news stories I read, gas must be a tiny fraction of policing budgets. The huge bulk is salaries.

              And where there's good public transport, lots of commerce doesn't depend on driving, and given a good profit incentive (already existing subway tunnels or elevated tracks), I bet you could replace a lot of trucking with overnight(to avoid the commuters) train runs through the subway system.
              Last edited by Spartacus; March 07, 2011, 04:36 PM.

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