Saudi Arabia

President Putin made an unusual and urgent call to King Salman bin Abdulaziz Al Saud on Wednesday after the leader of Saudi Arabia refused to speak to President Obama on the upcoming Syrian ceasefire later this week – a situation which risked a World War if left unresolved. The Saudi king spoke to Putin about the nature of the Russian-US ceasefire agreement in Syria, before agreeing to cooperate with it. “The king of Saudi Arabia welcomed the reached agreements and expressed readiness to cooperate with Russia for their implementation,” The Kremlin reports.

Saudi Arabia, the United Arab Emirates and Bahrain have urged their citizens to leave Lebanon or avoid travelling there, amid deteriorating political ties between Riyadh and Beirut. On Tuesday they called on “all citizens not to travel to Lebanon, for their safety, and asking citizens residing in Lebanon or visiting not to stay unless extremely necessary.” The move on Tuesday came after Riyadh halted $4bn in aid to Lebanese security forces in response to “hostile” positions linked to the Lebanese Shia group Hezbollah.

While the prevailing dour (or perhaps sour) overnight mood was a continuation of the weak oil theme which started yesterday after Iran said the production freeze proposed by Saudi and Russia as "ridiculous", and Saudi oil minister Al-Naimi said that Saudi won't cut supply and that high-cost producers need to either "lower costs, borrow cash or liquidate” (ideally the latter), risk sentiment was further dented when BOJ Governor Kuroda says he won’t target FX rates or stocks, which is clearly nonsense, and further spooked Japanese asset prices (Nikkei -0.85), while s

Submitted by Charles Kennedy via OilPrice.com,

This is a financial cold war - nothing more, nothing less.

While there are billions of reasons to cut output, and every major producing country is reeling from the loss of revenues, some are weathering the current bust better than others, but the devil is in the details, and the details contain tons of variables.

Production cost and breakeven figures that analysts enjoy bandying can trap you in bubble of black-and-white mathematics that is a few brush-strokes shy of a full picture.

Submitted by MiddleEastEye via TheAntiMedia.org,

Weapons imports by Saudi Arabia and Qatar have rocketed by over 275 percent over the past four years, a new report found on Monday.

Between 2011 and 2015, Gulf states were the most significant market for sales by the United States, the world’s biggest arms exporter, the Stockholm International Peace Research Institute (SIPRI) found.