Did the Saudis Just Win? 5 Signs That the Oil Glut Crisis May Be Over
Sputnik – March 8, 2016
Saudi Arabia’s alleged strategy of pushing high-cost oil producers off the market may have worked, as investors have shifted their focus away from high-cost shale oil operations and large multinationals are increasingly looking at short-term projects.
Although hedge funds such as Goldman Sachs are warning against thinking that commodities including oil are facing a long-term rally, there are several signs that oil prices may have already hit bottom.
1. OPEC Rebalance
News of a looming oil deal among OPEC countries may have helped oil prices begin a stable, nearly month-long rally on February 12. Days earlier, Igor Sechin, head of Rosneft, Russia’s biggest oil company, said it would be open to the idea of an output cut and OPEC’s Venezuela made the first concrete proposal the following day.
Unlike OPEC countries, Russia’s oil producers are predominantly private companies responsible to shareholders, although some, such as Rosneft, also have a significant share of government control. The new deal, however, may lead to a rebalance of OPEC influence by including Russia and Mexico, both of which held negotiations, while members such as Venezuela, which has the world’s largest oil reserves, could lose standing.
At the same time, Russian oil companies are starting to diversify internationally, with Lukoil looking into Iranian assets while Rosneft begins drilling off the coast of Vietnam to regain positions potentially lost as a result of US sanctions.
2. Shale Crash
Despite a rise in prices over the past few weeks, US shale oil companies announced that they would cut output as a result of major losses.
Companies such as Chevron and ConocoPhillips may actually compete against shale oil companies as they cut investments in deepwater oil extraction, giving domestic shale producers more opportunities to cut losses and liquidate their assets.
In the long term, however, the effect may be temporary, as the lifting of the US oil export ban could lead major US companies to increase exports.
3. Chinese Weather
Despite fears regarding China’s economy and predictions of an economic “perfect storm,” the fears did not materialize. As a result, volatility unseen since the 2008-2009 financial crisis began to fall, allowing oil prices to regain stability and head higher.
China’s troubles still prevail, but disruptions in the country’s stock market proved to not significantly impact economic fundamentals, in an economy which still suffers more from overinvestment as a result of government planning than from problems raising capital.
4. Iranian supplies
While Iran was ready to ship oil as soon as sanctions were lifted, with long-term supplies stored in tankers, the introduction of Iranian oil did not greatly impact the European oil market, as the country shipped less than a third of the oil it promised to export.
Low oil prices may have also been behind Iran’s less-than-spectacular results when it came to raising capital for new oil production, which the country plans to grow to pre-sanctions highs.
5. US Inventories May No Longer Matter
Although the oil glut prevails, in the United States, oil prices have continued steadily rising even after announcements that US inventories grew nearly three times more than expected. The country’s oil producers have actually begun eyeing oil exports to Europe, which faces supply disruptions as a result of an accident in Nigeria and financial trouble among offshore North Sea oil operations.
At the same time, major oil companies are increasingly wary of long-term investments which could be subject to future volatility.
The situation suggests that Saudi Arabia’s alleged strategy of forcing out high-cost operations for both shale and offshore projects may have actually worked, and while the US would face beneficial export conditions while the glut is ongoing, consolidation and liquidation in the shale sector could bring back the pre-shale world while scaring off investors from higher-cost projects.
US B-52s to perform ‘not normal’ exercises in Norway
RT | March 3, 2016
Three B-52 Stratofortress bombers that have moved from the US to Europe are set to participate in military exercises in Norway. A top US commander characterized the redeployment as “not normal.”
The move, which began last week with the bombers and 200 support airmen being stationed in Spain, is part of the Obama administration’s build-up of US forces in Europe in response to European countries’ anxiety over perceived Russian aggression.
However, US Air Force General Philip Breedlove said Tuesday that while the deployment of the B-52s was abnormal, the aircraft had been scheduled for NATO exercises and the move was not prompted by the actions of Russia, the Washington Post reported.
“It is a part of the exercise objectives… not a part of any response [to Russian actions],” Breedlove insisted, according to Sputnik.
The three bombers are assigned to the 2nd Bomb Wing and were rebased from Barksdale Air Force Base, Louisiana on Friday, and will temporarily stay at Spain’s Morón Air Base.
“Strategic bomber deployments enhance the readiness and training vital to rapidly projecting global power and responding to any potential crisis or challenge,” Admiral Cecil D. Haney, the commander of US Strategic Command, said in a statement.
The bombers provide a unique complement to the nuclear delivery capabilities of intercontinental ballistic missiles and ballistic missile submarines, Haney added.
The Norwegian exercise, called Cold Response, is meant to practice “high-intensity operations in winter conditions,” according to the Pentagon. More than a dozen NATO countries will participate in the rehearsal that is meant to underscore NATO’s ability “to defend against any threat in any environment.”
In February, Secretary of Defense Ashton Carter announced that US military spending on Europe would be more than quadrupled from $689 million in 2016 to $3.4 billion in 2017.
Obama extends anti-Russia sanctions for another year
Press TV – March 3, 2016
US President Barack Obama has signed a new Executive Order that extends economic sanctions against Russia for another year.
The decree, published Wednesday on the official White House website, states that economic and financial sanctions imposed on Moscow over its involvement in the Ukrainian crisis will stay in place until March 6, 2017.
The decision came as “Russia’s actions continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States,” Obama said in the document.
“I found that the actions and policies of the Government of the Russian Federation with respect to Ukraine undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets,” the president added.
The move drew criticism from the Kremlin, with Russian presidential spokesman Dmitry Peskov telling reporters on Thursday that the decision was regrettable.
The sanctions were originally introduced against Moscow in March 2014, after Ukraine’s Black Sea peninsula of Crimea joined Russia. The move prompted the US to press sanctions against Russia’s energy and finance sectors.
The European Union followed suit shortly after, introducing its own set of sanctions against Moscow that targeted a number of Russian politicians and businessmen, and placed restrictions on lending to Russia’s major state-owned banks, military and oil firms.
On the military side, exporting dual-use equipment to Russia was banned and all future EU-Moscow military deals were put on hold.
According to EU spokeswoman Maja Kocijancic, the bans sought to force Russia to comply with the ceasefire introduced by the Minsk agreement.
Putin signed the agreement with Ukrainian President Petro Poroshenko in February last year, following negotiations held in the presence of French President Francois Hollande and German Chancellor Angela Merkel.
The deal introduces a complete ceasefire, withdrawal of heavy weaponry from border areas, and holding free elections in the region.
Russia working on ways to protect its internet due to US online dominance – Com. Minister to RT
RT | March 2, 2016
The US government and a handful of corporations working under US jurisdiction have a disproportionately strong influence on the internet. So other countries are mulling ways to protect their web sectors, the Russian communications minister told RT.
“Today, if you have a look at the whole IT global system, you will see that the whole world… is actually totally dominated by a single country and literally by several companies, which have practically monopolized the entire IT system,” Nikolay Nikiforov said.
The issue is not only about market shares of tech giants such as Google and Facebook, but also about the US government’s control of critical elements of the internet’s infrastructure, he said.
One small example is the Internet Corporation for Assigned Names and Numbers (ICANN), which assigns internet domain names. In 2014, the US pledged to hand over control over it from the US Department of Communications to a multi-stakeholder collective, which would include governments, companies, international organizations and individual users. The transition was scheduled to happen in September last year, but was postponed for at least a year.
“This didn’t happen for some reason, and many reasons were voiced. I believe them to be pretty far-fetched,” Nikiforov said.
“With this prolonged monopolization, many countries in the world are working on technical solutions that would protect national segments of the internet from a possible external destructive action. They are creating backup infrastructures, which respond to a disruption – intentional or accidental – and prevent national segments from being blocked,” he added.
The minister said Russia is among the countries heavily investing in the internet and naturally wants to protect this investment.
The issue is not theoretical for Russia. As part of the US-imposed sanctions, several American companies suspended their services in Crimea, which seceded from Ukraine in response to an armed coup in Kiev and rejoined with Russia. Washington called the move illegal and targeted individuals and some sectors of the Russian economy with sanctions.
Google, Apple, PayPal and others cut Crimea from their services. This affected tens of thousands of people, who could no longer properly update the software for their phones, buy apps, use electronic payments for online products and do other basic things.
The minister was speaking in Egypt, which he is visiting to foster business ties. He said Russia and Egypt have agreed to have mobile operators to cut down roaming tariffs, which would benefit Russian tourists visiting the North-African country.
“It’s no secret that overpriced roaming is the reason why many travelers simply don’t use their phones abroad. We are trying to make this problem go away for Egypt and Russia,” he said.
The agreement indicates that Russia may soon lift restrictions on flights to Egypt, which were imposed after a terrorist bomb last October destroyed a plane carrying Russian tourists home from Egyptian resorts.
Russia is existential threat to US and allies: NATO commander
US Air Force General Philip Breedlove
Press TV – March 2, 2016
A top US military official, who is NATO’s military commander, says Russia is an “existential threat” to Washington and its European allies.
In testimony before the US Senate Armed Services Committee on Tuesday, US Air Force General Philip Breedlove accused Russia of choosing to be an adversary and seeking to exert influence over its neighboring states.
“Russia has chosen to be an adversary and poses a long-term existential threat to the United States and to our European allies and partners,” Breedlove said.
“Russia is eager to exert unquestioned influence over its neighboring states in its buffer zone… so has used military force to violate the sovereignty and territorial integrity of Ukraine, Georgia and others, like Moldova,” he added.
Breedlove stressed that Washington needs additional resources in Europe to counter a “resurgent, aggressive Russia.”
“Russia seeks to re-establish a leading role on the world stage. Russia does not just want to challenge the agreed rules of the international order, it wants to re-write them,” he said.
The four-star general, who also heads the US military’s European Command, said he asked for a substantial boost in resources for Europe in the budget for the 2017 fiscal year.
Relations between Washington and Moscow are at their lowest point since the end of the Cold War in 1991, largely due to the Ukraine crisis.
The ties deteriorated after US-backed forces ousted Ukraine’s elected president, Viktor Yanukovych, in February 2014.
The US and its allies accuse Moscow of sending troops into eastern Ukraine in support of the pro-Russian forces. Moscow has long denied involvement in Ukraine’s crisis.
Moscow says Washington is responsible for the escalating tension in Ukraine through sending arms in support of the Ukrainian army.
The US-led military buildup in NATO member states bordering Russia has drawn strong objections from Moscow, followed by warnings of a well-measured response.
The US military deployed hundreds of tanks and thousands of troops to the Baltic states of Latvia, Estonia and Lithuania in order to deter what it described as “Russian aggression.”
US-Russian ties worsen over Syria
Relations between the US and Russia further deteriorated when Moscow launched an air offensive against Daesh terrorists, many of whom were initially trained by the CIA to fight against the Syrian government.
The Russian campaign, analysts say, has broken the backbone of ISIL and other militants, and has provided the government of President Bashar al-Assad an opportunity to defeat the foreign-sponsored terrorist onslaught.
Since March 2011, the United States and its regional allies have been conducting a proxy war against Syria. The years-long conflict has left somewhere between 270,000 to 470,000 Syrians dead and half of the country’s population displaced.
In his testimony on Tuesday, General Breedlove accused Russia of helping President Assad turn the refugee crisis into a “weapon” against the West.
“Together, Russia and the Assad regime are deliberately weaponizing migration in an attempt to overwhelm European structures and break European resolve,” Breedlove told the Senate Armed Services Committee.
Gazprom cutting gas supplies to Turkey
RT | February 26, 2016
The already strained relations between Moscow and Ankara have taken a turn for the worse. Gazprom has cut gas supplies by nearly a quarter after failing to reach an agreement with Turkish importers on discounts for Russian natural gas.
Delivery is down 23 percent, compared to the same period last year, Interfax reports, quoting data from Bulgarian gas operator Bulgartransgaz that processes about 50 percent of Russian gas going to Turkey.
According to the news agency sources, the reduction is linked to a price dispute between Gazprom and Turkey’s private gas importers.
Last year, Gazprom gave the importers a 10.25 percent discount, but is now doing away with it as energy prices have dropped significantly.
Business daily Kommersant’s sources say Gazprom stopped giving the discount at the beginning of the year. For January deliveries, Turkish companies had to pay at a higher price, but on the payment date of February 21 they only paid the discounted price.
As a result, Gazprom has cut the volume delivered by the size of the underpayment.
Enerco Enerji, Bosphorus Gaz, Avrasya Gaz, Shell, Bati Hatti and Kibar Enerji are the importers affected. Overall, they import 10 billion cubic meters of Russian gas per year. Kommersant’s sources in the companies say the cancellation of the discount hurts their business, as they have signed contracts with clients based on the discount gas price.
From the 1st to the 24th of February Gazprom under-delivered 117 million cubic meters worth $30 million, the newspaper’s calculations say. Kommersant added that Turkey could fine the Russian gas monopoly $2.5 million for not fulfilling its obligations.
The source in Gazprom claimed the reduction in supply will not affect supply of the Turkish market, “especially because Botas does not reach its contractual volumes.”
State-owned Botas imports about 17 billion cubic meters of Russian gas per year. In 2015, it didn’t get a discount from Gazprom due to the failure of the Turkish Stream negotiations and is now suing Gazprom.
America’s Plan B: Supporting Terrorists Till the Bitter End
By Martin Berger – New Eastern Outlook – 25.02.2016
At a time when the international community is looking forward to the possibility of putting an end to the bloody conflict in Syria that has dragged on for years, while putting their hopes behind the agreement that was achieved between the US and Russia on February 22 regarding the cessation of all hostile activities in Syria, certain forces in the United States carry on banging the war drum.
As it has been pointed out by the The Wall Street Journal :
Defense Secretary Ash Carter; Marine Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff; and Central Intelligence Agency Director John Brennan have voiced increasingly hawkish views toward Moscow in recent White House meetings, calling for new measures to “inflict real pain on the Russians,” a senior administration official said.
Moreover, those gentlemen are somehow convinced that Moscow will break the ceasefire, so they have formulated a “Plan B,” that will imply the strengthening of their support to extremists and the introduction of new sanctions against Russia.
Of course, one could only be amazed by such behavior from Washington’s “hawks” if one did not take into consideration the evidence exposing their direct involvement in the continuous aggravation of the situation in Syria, which makes them directly responsible for the deaths of thousands of civilians. Those actions would for sure present the perfect subject for a careful investigation of an international tribunal.
In particular, according to the facts presented by Daveed Gartenstein-Ross and Nathaniel Barr in the Daily Beast, the CIA is now assisting the terrorist organizations that the United States has been allegedly fighting for 15 years. This program was launched in 2013 to further aggravate the armed conflict in Syria. According to this publication, at least one of these CIA-backed groups severed its ties with the CIA and joined a listed terrroist-led coalition, Later, Associated Press reported that CIA-backed groups are gaining ground in Syria, “fighting alongside more extremist factions.”
The article concludes:
Analysis of the geography of “moderate” rebels’ gains during this period and reports from the battlefield demonstrate that CIA-backed groups collaborated with Jaysh al-Fateh, an Islamist coalition in which Jabhat al-Nusra—al Qaeda’s official Syrian affiliate—is a leading player…
and
At this point it is impossible to argue that U.S. officials involved in the CIA’s program cannot discern that Nusra and other extremists have benefited. And despite this, the CIA decided to drastically increase lethal support to vetted rebel factions following the Russian intervention into Syria in late September.
The authors are convinced that now it’s more important than ever to organize a public debate in the US about the role that the CIA played in the Syrian conflict and the considerable strengthening of radical groups.
It would be no less interesting to take a look at yet another investigation of the criminal role American intelligence agencies played in the inciting of the Syrian conflict that was published in The New York Times. The authors, Mark Mazzetti and Matt Apuzzo described in detail how the United States was using Saudi money to provide radical militants in Syria with lethal weapons. Yet, this is but an episode in the continuous and vicious cooperation between Saudi and American security agencies that lasted for decades. The alliance was in place during the Iran-Contra scandal, the hidden fight against Soviet troops in Afghanistan and countless proxy wars in Africa.
These forces are actively involved in the Ukrainian conflict, openly opposing any form of peaceful settlement, pushing all the blame on Russia while Turkey is pulling the strings behind the stage and sending radical mercenaries to Ukraine.
Therefore, one shouldn’t be surprised that this Plan B will be put into action regardless of the facts surrounding how the parties actually observe the agreements reached or even before it’s imposed. It would be safe to assume that the CIA will be put in charge of the operation, funded with the money provided by Saudi Arabia, therefore we can await provocations and misleading articles about how it is Russia who is continuing with provocations, not these forces hidden in plain view.
That is why today the international community is tasked with preventing the failure of the recent agreement between the leaders of the US and Russia by exposing those “hawks”, namely the CIA, the Pentagon, and Saudi intelligence services.
Using terrorists as pawns prolongs Middle East crises: Lavrov
Press TV – February 25, 2016
Russian Foreign Minister Sergei Lavrov says the crises in the Middle East will not be settled as long as terrorists are used as pawns in pursuit of certain geopolitical agendas.
The fight against terrorism “cannot be successful if attempts are not stopped at using terrorists as pawns in doubtful geopolitical games,” Lavrov said in Moscow on Thursday.
“The further degradation of the situation presents a serious threat for the entire international architecture,” he told a session of the Valdai International Discussion Club.
“Obviously a strong stability of the situation is impossible without the destruction of the center of the terrorist threat, first and foremost Daesh,” he said.
During the session, Russian Deputy Foreign Minister Mikhail Bogdanov said Moscow was concerned about statements from US officials about alternatives to a plan for the cessation of hostilities in Syria.
“We are concerned about claims of certain Western partners, including the United States, about the existence of a certain ‘plan B.’ We know nothing about it, and we are not discussing any alternate plans.”
The United States and Russia announced on February 22 that they had reached a deal for a “cessation of hostilities” in Syria, which would begin on February 27.
The Syrian government said the following day that it accepts the terms of the deal on the condition that military efforts against Daesh and the al-Qaeda-linked al-Nusra Front continue.
In the lead-up to the agreement, US Secretary of State John Kerry said the US had a “plan B” for military action to enforce if the cessation of hostilities failed.
Bogdanov, who serves as President Vladimir Putin’s special envoy to the Middle East, said Russia expects the US to negotiate the implementation of the agreement with the Syrian opposition.
“Russia is doing the necessary work with Damascus and the legitimate Syrian leadership. We expect the United States to do the same with groups allied with them and supported by them,” he said.
The Russian diplomat also said the notion of setting up a buffer zone in Syria and to launch a ground operation in the war-hit country could only exacerbate the situation.
“Steps that could further worsen the Syria crisis cause our great concerns. In particular, this includes attempts to implement the idea of setting up a buffer zone on the Syrian-Turkish border and putting together some blocs for a land operation.”
Bogdanov was referring to Ankara’s plans to set up a buffer zone and by send ground troops into Syria by Turkey and Saudi Arabia.





Part One, The Record, treats the history of garlic as evidence. From the clay garlic bulb placed in an Egyptian grave nearly six thousand years ago, through the Ebers Papyrus, through Hippocrates, Dioscorides, Pliny and Galen, the Arab physicians under Avicenna, the medieval herbals, Culpeper, and the plague years, to the last era in which Western physicians prescribed garlic as a matter of course, which ran from 1850 to 1945. It closes with the living traditions that never stopped using it, and with the folklore of charms, vampires and the evil eye.