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BRENT WTI MOVE UP ON PROMISE OF US-CHINA TRADE TALKS

BRENT WTI MOVE UP ON PROMISE OF US-CHINA TRADE TALKS

06 September 2019

Brent Oil Futures was up 0.13% at $61.03 a barrel, as of 12:40AM ET (04:40 GMT), while Crude Oil WTI Futures was up 0.12% at $56.37 a barrel. The EIA...

PRAISE SINGERS  GO TO "GREET" NEW  GMD NNPC

PRAISE SINGERS GO TO "GREET" NEW GMD NNPC

04 August 2019

If journalism is to have meaning, to fulfill its raison d'etre, then it must be about speaking truth to power; giving a voice to the voiceless. The National Chairman of...

IS IT A NIGERIAN GAS FLARE COMMERCIALISATION PROGRAM ?

IS IT A NIGERIAN GAS FLARE COMMERCIALISATION PROGRAM ?

31 July 2019

The Nigeria Gas Flare Commercialisation Programme (NGFCP) is a prime example of a project well concieved but poorly executed and unlikely to achieve most of its objectives despite its inherernt...

VR CAPITAL BUY 25% OF P&ID AS NIGERIA FACE $9BN FINE

VR CAPITAL BUY 25% OF P&ID AS NIGERIA FACE $9BN FINE

05 June 2019

First, a health warning. This article is about recalcitrant, inept and quite possibly corrupt Nigerian politicians and government ministers. It is certainly about incompetence and misconduct in public office. It...

DISASTER AS UNEMPLOYMENT LEAPS BY 30%  TO 20.9m

DISASTER AS UNEMPLOYMENT LEAPS BY 30% TO 20.9m

29 May 2019

Nigeria is sleepwalking into a disaster which has the potential to unleash instability, insecurity and crippling hardship. Unemployment is always a cause for concern, it is the clearest indication that...

 NIGERIA NGIGE UNDEREMPLOYED OR UNEMPLOYABLE?

NIGERIA NGIGE UNDEREMPLOYED OR UNEMPLOYABLE?

08 May 2019

Working on the assumption that the Minister of Labour and Employment, Senator Chris Ngige has not been misquoted it is difficult to understand his recent pronouncement and what now seems...

NIGERIA ANOTHER MOU ANOTHER DAY

NIGERIA ANOTHER MOU ANOTHER DAY

01 May 2019

Nigeria has announced ambitious plans to double its oil production by 2025, targetting 4 million bpd in six years’ . Maikanti Baru, Group Managing Director at the Nigerian National Petroleum...

NNPC REFINERY WOES 2019

NNPC REFINERY WOES 2019

24 April 2019

The Nigerian Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has not unpredictably, stated that Nigeria’s continuous subsidy of petrol consumption means the Nigerian National Petroleum Corporation (NNPC) will...

NIGERIA OPEC STAND FIRM

NIGERIA OPEC STAND FIRM

28 March 2019

Nigeria and other member countries of the Organisation of Petroleum Exporting Countries (OPEC) as well as their non-OPEC allies led by the Russian Federation have said they are committed to...

PALM OIL PRODUCTION UNDERPERFORMS

PALM OIL PRODUCTION UNDERPERFORMS

18 March 2019

PALM OIL PRODUCTION A MEAGRE PERFORMANCE Nigeria from gaining a substantial share of the global oil palm industry now worth $62 billion annually, casting doubts on government’s ability to grow...

NIGERIA REFINING THE VISION

NIGERIA REFINING THE VISION

18 March 2019

NIGERIA REFINING THE VISION Nigeria is the only OPEC member country that imports gasoline (PMS) and holds the dubious distinction of being the largest importer in the world. The Nigerian...

IS THE PGB FATALLY FLAWED?

IS THE PGB FATALLY FLAWED?

18 March 2019

IS THE PIGB FATALLY FLAWED? Ten years after the Petroleum Industry Bill began its tortuous odyssey which has included the Bill being broken into four portions, both houses of the...

CBN PUMP UP THE T-BILLS

CBN PUMP UP THE T-BILLS

18 March 2019

CBN PUMP UP THE T-BILLS The Central Bank of Nigeria (CBN) plans to raise a total of N1.809 trillion from the debt market, in the first quarter of 2019.This is...

TIN EXPORTS NIGERIA

TIN EXPORTS NIGERIA

17 March 2019

TIN EXPORT NIGERIA Synterra are able to export high grade tin ore from Nigeria. We agregate the Mining production of a number of artisanal miners and consolidate volumes for exportSynterra...

BERYLLIUM MINING OPPORTUNITIES

BERYLLIUM MINING OPPORTUNITIES

17 March 2019

The Nigeria Solid Mineral and Mining Sector has in effect made the great leap forward which will now allow investors to take advantage of the vast mineral potential Nigeria possess....

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Monday, 30 September 2019 00:01

US TROOPS TO DEFEND SAUDI SPECIAL RELATIONSHIP

Written by Femi Ogunkolati
Saudi US Special relationship oil and arms Saudi US Special relationship oil and arms

Oil prices have retreated back to the pre- strike levels as Aramco reports it has  restored full production capacity. Their  prompt actio has  made markets reluctant to demand much, if any, oil price risk premiums, as if we are to believe what we are told, the Saudi's have the ability to quickly recover from any production outage.

Crude oil prices gained traction after Pentagon announced that the United States will be deploying military equipment and support personnel to Saudi Arabia in response

to the drone and missile attacks aimed at  Saudi Arabian oil facilities earlier in September. In plain speak the US will now be manning Saudi air defense. It is a fudge of sorts as the man in the Whitehouse has one eye on re-election in 2020 and seems determine not to be drawn into any military scale action in the Middle East.

However given Saudi Arabia's ostentatious purchase of American military hardware, one might be justified in questioning quite why they need the US to defend the Kingdom. The Saudis have spent over $80 billion on arms bought from the UK and the US in the last couple of years and between 2014- 2018 were the largest global importer of arms. If these arms are not going to be used to protect the Kingdom then what is the point of buying them?

 The Saudi strategy seems clear, these multi billion dollar purchases firmly establish a symbiotic relationship which allows the Saudis to  leverage the US and  its western allies of  whom arms it buys  and who in return are prepared to overlook  Saudi’s human rights abuses, assassinations and other excesses  because there is too much money to be made. A foreign policy model which not only uses its vast oil wealth to buy silence, but  uses  its strategic position as the largest global oil exporter ( and swing supplier)to get its allies to defend it.

 The simple truth is that Saudis do not fight their own battles, they typically and historically hire mercenaries or employ proxies  from other poor countries and pay them well enough to keep them  fighting. The conflict in Yemen supposedly prosecuted by a Saudi led  “ Arab coalition” , is a clear illustration of this policy. The Saudi led coalition

 which  includes mercenary forces from Egypt, Jordan and Morocco, as well as Sudanese child soldiers do all the fighting. Then the substantitve question must be, is it an acceptable proposition for the Whitehouse to employ US lives to defend and support the  proselytization  of Saudi Arabian sectarianism? It is difficult  to exaggerate the  paranoia that exists in the minds of Sunni Arabs about the threat from Shia Islam and a Persian – Iran.

If a "locked and Loaded" US intervene to support a Sunni agenda the most likely outcome is a calamitous destabilisation of the region which is the least desirable outcome for the US.  All at a time when the fidelity of the 'special relationship' between Riyadh and Washington has lost much of its lustre. The US no longer rely on Saudi oil, accounting for less than 10% of total US imports. The Saudi Arabia led Operation Decisive Storm disasterous intervention in Yemen civil war supporting an ousted Sunni  government has created the world's worst humanitarian crisis. It has created a Sunni - Shiite proxy war which if care is not taken will engulf the whole region. But importantly it has created a vociferous lobby in Washington that vilifies the  tenor of the Washington-Riyadh relationship and is opposed to Saudi actions in Yemen.

 There are clear signs that the US-Saudi relationship forged in 1945 is coming to an end. Though the US have imposed additional sanctions on the Iranian Central Bank and deployed 200 odd more support troops, for what Pompeo, the Secretary of State classified as an act of war, the US response has been muted. Indeed there has been push back in Washington from 'progressive' actors that see the relationship with the Saudis as immoral and incompatible with US values. President Trump has even intimated that the US are now energy independent, the inference being the value of the Saudi relationship to the US has diminished. Whilst his observation might be slightly premature, the direction of travel is spot on.

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