Guest Post from Craig MacIntosh at International Man:
It’s called the Shanghai Cooperation Organisation… and the top choppers just joined. Long-term readers will recall we suggested as much two years ago. Well… tada!
Saudi Arabia’s King Salman bin Abdulaziz approved a Memorandum of Understanding (MoU) that grants the Kingdom the status of a dialogue partner within the Shanghai Cooperation Organization, the official Saudi Press Agency (SPA) reported on Tuesday.
In late 2021, following the absolutely atrocious withdrawal of US troops from Afghanistan (leaving US residents on the bottom, including those that worked for the US) and the resulting subsequent slaughtering of “sympathizers” and their families (oh, you didn’t see that on mainstream media… weird), we explained that there have been two key countries to deal with: Saudi Arabia and Taiwan. The explanation? Each relied on US protection for his or her very existence. It wasn’t even a month after the US withdrawal in Afghanistan that the Saudis struck a military cope with Russia, moving rapidly to secure their recent military partner. Their important economic partner, we already know, is now China.
As I even have said repeatedly, where trade goes so go military and political alliances.
Now, realize this war is fought on multiple fronts. Because the West attempts to destroy demand for oil, OPEC+ fights back.
In fact they did.
OPEC+ announced a surprise oil production cut of greater than 1 million barrels a day, abandoning previous assurances that it might hold supply regular and posing a brand new risk for the worldwide economy.
While the US strategic Oil Reserve chart now looks like an NFT price chart.
But wait, it gets higher. While the top choppers cut output by 500,000 b/pd from next month, Iraq, feeling neglected, decided to a “voluntary oil production cut” of 211,000 b/pd as of May till year-end. Then Kuwait “voluntarily” cut production by 128,000 b/pd also from the start of May. Oman, feeling lonely, followed with a “volutantary” 40,000 b/pd cut from the start of May. And yet another. The UAE cut 144,000 barrels of the stuff from May, too. Oh, I nearly forgot one — Russia. The Russkies may also cut 500,000 gallons of production this yr.
All up, we’re over 1.5m b/pd coming off market. If this isn’t a collective middle finger, then I don’t know what’s.
It’s not only Saudi sprinting away from Davos man. Those darned curry-eating, tea-growing, cricket-playing Indians aren’t playing ball either. Rattling them!
Reuters pronounces: “Russia’s Rosneft signs deal to spice up oil supplies to India”
India has been the largest buyer of Russia’s benchmark Urals grade crude in March. Deliveries to India are set to account for greater than 50% of all seaborne Urals exports this month, with China in second place
Those naughty naughty Indians with their dodgy stomach-moving vindaloos! Now they’re busy cavorting with the Russkies. It’s almost like they’re giving the center finger to the US empire.
By the way in which, Russian sales of crude to India jumped 22x last yr. Yes, you heard that right. TWENTY. TWO. TIMES!!
Energy in the brand new cold war.
The “non-Western Bloc” holds some 70% of the world’s crude oil reserves, 80% of natural gas reserves, and 43% of coal reserves (probably so much more provided that China has Indonesian coal wrapped up).
The sanctions on Russia may backfire on the West in ways they never thought while the US shale peaking out will just add fuel to this fireplace!
The one reason to fret about that is in case you aren’t positioned the precise way. We predict we’re, so we aren’t complaining!
Implications?
We’ll leave you with this quote:
Capitalism beats socialist ideologies (eventually).
Editor’s Note: The Western system is undergoing substantial changes, and the signs of ethical decay, corruption, and increasing debt are inconceivable to disregard. With the Great Reset in motion, the United Nations, World Economic Forum, IMF, WHO, World Bank, and Davos man are all promoting a unified agenda that can affect us all.