It’s called the Shanghai Cooperation Organisation … and the head choppers just joined. Long-lasting readers will recall we recommended as much 2 years ago. Well … tada!
Saudi Arabia’s King Salman bin Abdulaziz authorized a Memorandum of Understanding (MoU) that grants the Kingdom the status of a discussion partner in the Shanghai Cooperation Organization, the main Saudi Press Company (HEALTH SPA) reported on Tuesday.
In late 2021, following the definitely atrocious withdrawal of US troops from Afghanistan (leaving US people on the ground, consisting of those who 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 were two crucial nations to concentrate on: Saudi Arabia and Taiwan. The factor? Both counted on US defense for their very presence. It wasn’t even a month after the United States withdrawal in Afghanistan that the Saudis struck a military deal with Russia, moving rapidly to secure their brand-new military partner. Their main economic partner, we already know, is now China.
As I have stated repeatedly, where trade goes so go military and political alliances.
Now, understand this war is fought on numerous fronts. As the West tries to ruin need for oil, OPEC+ battles back.
Of course they did. OPEC + announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and presenting a brand-new threat for the global economy.
While the United States tactical Oil Reserve chart now appears like an NFT cost chart.
But wait, it gets better. While the head choppers cut output by 500,000 b/pd from next month, Iraq, feeling neglected, chose to a “voluntary oil production cut” of 211,000 b/pd as of Might till year-end. Then Kuwait “willingly” cut production by 128,000 b/pd likewise from the start of May. Oman, feeling lonely, followed with a “volutantary” 40,000 b/pd cut from the start of May. And one more. The UAE cut 144,000 barrels of the things from May, too. Oh, I almost forgot one– Russia. The Russkies will likewise cut 500,000 gallons of production this year.
All up, we’re looking at over 1.5 m b/pd coming off market. If this isn’t a collective middle finger, then I don’t know what is.
It’s not simply Saudi running away from Davos guy. Those darned curry-eating, tea-growing, cricket-playing Indians aren’t playing ball either. Damn them!
Reuters announces: “Russia’s Rosneft signs deal to boost oil supplies to India”
India has actually been the biggest buyer of Russia’s benchmark Urals grade crude in March. Deliveries to India are set to account for more than 50% of all seaborne Urals exports this month, with China in second place
Those naughty Indians with their dodgy stomach-moving vindaloos! Now they’re hectic cavorting with the Russkies. It’s practically like they’re providing the middle finger to the US empire.
By the way, Russian sales of crude to India jumped 22x last year. Yes, you heard that right. TWENTY. TWO. TIMES !!
Energy in the new cold war.
The “non-Western Bloc” holds some 70% of the world’s petroleum reserves, 80% of gas reserves, and 43% of coal reserves (probably a lot more considered that China has Indonesian coal finished up).
The sanctions on Russia might well backfire on the West in methods they never believed while the United States shale peaking out will simply fan to this fire!
The only factor to fret about this is if you aren’t placed the proper way. We believe we are, so we aren’t complaining!
Ramifications?
We’ll leave you with this quote:
Commercialism beats socialist ideologies (ultimately).
Editor’s Note: The Western system is going through substantial changes, and the signs of moral decay, corruption, and increasing debt are impossible to neglect. With the Great Reset in motion, the United Nations, World Economic Online Forum, IMF, WHO, World Bank, and Davos man are all promoting a merged program that will affect all of us.
To get ahead of the chaos, download our free PDF report “Clash of the Systems: Thoughts on Investing at a Distinct Point in Time” by clicking here.