Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Iraq

More OPEC Bad News: Increases in World Oil Supplies Overwhelming Its Cuts

This article appeared online at TheNewAmerican.com on Wednesday, June 14, 2017:  

English: Map of OPEC countries. Dark green = m...

English: Map of OPEC countries. Dark green = member states, Light green = former member states. Light Grey = Prospective members.

In its regular monthly oil market report, the International Energy Agency (IEA) stated that the world’s supply of crude oil increased in April by 18 million barrels just when it was expected to decline. To add to OPEC’s woes —OPEC is unsuccessfully trying to reduce the world’s oil supplies by cutting production so as to raise oil prices enough to fund the countries’ welfare states —  the agency also said it expected U.S. producers to increase their production by 430,000 barrels a day this year over last year, and by 780,000 barrels a day in 2018. The agency added that even this might be too pessimistic: “Such is the dynamism of this extraordinary, very diverse industry it is possible that growth [in crude oil inventories] will be faster [than we estimate].”

Its report makes for sobering reading for OPEC’s 13 members and the other 10 nonmembers who extended a production cut agreement to March 2018:

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OPEC to Extend Oil Production Cuts Another Nine Months

This article appeared online at TheNewAmerican.com on Wednesday, May 24, 2017: 

Now that “everyone is on board” with a nine-month extension of last November’s agreement to cut production by OPEC, tomorrow’s meeting of the cartel in Vienna is expected to rubber-stamp that extension. Saudi Arabia’s oil minister, Khalid al-Falih, upon returning from Iraq on Monday, said, “We think we have everybody on board. Everybody I’ve talked to indicated that nine months [is] a wise decision.”

Iraq was the most egregious cheater under the November agreement, first complaining that the production numbers upon which its “participation” was based were too high, and then being very slow in implementing those cuts. The slack was picked up by Saudi Arabia, which cut more than it agreed to.

The overall goal of the cuts is to

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Sweden Revokes Arrest Warrant for WikiLeaks’ Julian Assange

This article appeared online at TheNewAmerican.com on Friday, May 19, 2017: 

Little is likely to change for Julian Assange, the founder of WikiLeaks, who just learned on Friday that his arrest warrant issued by Swedish authorities back in 2010 has been revoked. Until the British government decides to revoke its own warrant for Assange jumping bail in November of that year, he’ll stay put inside the Ecuadorian Embassy in London.

Sweden’s top prosecutor, Marianne Ny, said she gave up trying to serve him but added that “if he were to return to Sweden before the statute of limitations on this case expires in August 2020, the preliminary investigation could be resumed.”

At issue was a rape charge levied against Assange by two women with whom he had sexual relations while in Sweden to make a speech in 2010. When Interpol issued a Red Notice for his arrest, Assange gave himself up. In December that year he posted bail in London but

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OPEC Increasingly Irrelevant as Cartel Seeks to Extend Output-cut Deal

This article appeared online at TheNewAmerican.com on Wednesday, May 3, 2017: 

English: Flag of the Organization of Petroleum...

Gregory Brew’s statement from Oilprice.com on Tuesday was spot on: “OPEC Begins to Unravel.” Except that the unraveling began years ago as entrepreneurs in the United States found a way to tap underground shale profitably.

OPEC faces an essentially insurmountable task. On May 25, oil ministers from all 13 of the cartel’s members will meet in Vienna to decide whether or not its present oil output cut agreement should be extended. Either way, OPEC’s doom as the prime determiner of world crude oil prices is likely sealed.

If they decide not to extend the output cut, the world will know that OPEC is finished. The ministers will depart Vienna and tell their governments that

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Trump Picks Neocon to Head Council of Economic Advisors

This article appeared online at TheNewAmerican.com on Monday, April 10, 2017:

President Donald Trump announced on Friday that he would nominate Kevin Hassett as chairman of his Council of Economic Advisors. Immediately, Glenn Hubbard, a neocon serving as a visiting scholar at the “conservative” American Enterprise Institute (AEI), piped up to laud Hassett’s nomination and Trump’s wisdom in selecting him for the position: “He’s not just a standard-issue really good economist, [Hassett is] someone who knows how policy works. The tax changes being considered are really aimed at boosting investment, so I think Kevin is exactly the right person.”

He’s the right person if Trump wants someone whose resumé includes stints at the

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Trump Stumbles Again: Appoints Interventionist to head his Council of Economic Advisors

This article was published by The McAlvany Intelligence Advisor on Monday, April 10, 2017:

Cover of "DOW 36,000 : The New Strategy f...

One way to test a hypothesis is to apply it to the real world. Two renowned, highly-regarded, and elite-college trained economists did just that. In 1999 James Glassman, the founding executive director of the George W. Bush Institute (Harvard-trained with a BA in government), and Kevin Hassett, BA in Economics from Swarthmore and Ph.D. in Economics from the University of Pennsylvania, wrote Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market. So sure were they about their prediction they went on the road to promote it, claiming that “stocks are now in the midst of a one-time-only rise to much higher ground – to the neighborhood of 36,000 on the Dow Jones Industrial Average.”

On December 31, 1999 the Dow stood at 11,497. A little over three years later the Dow closed (on March 6, 2003) at 7,673, a drop of 3,823 points, costing those who bought the book and took their advice one-third of their investment.

But both persisted,

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More Evidence that OPEC’s Influence is Waning

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 22, 2017:

A measure of the success – and failure – of OPEC’s agreement to limit crude oil production can be seen in the chart of NYMEX crude oil price behavior (Sources below) dating from last fall. When the agreement was inked back in November, crude was at $46.50 a barrel. The price soared and traders got excited, putting in long bets that set records.

By early January, reality began setting in as compliance among the cartel’s members and non-members (who agreed to go along for the ride) began to wane. The roof fell in a couple of weeks ago when inventory builds continued to set records, and the price dropped through support at $50.

In other words, in OPEC’s attempt to birth an elephant, it succeeded in birthing a gnat.

Saudi Arabia maintained a stiff upper lip during the Houston oil conference, stating flat out that

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Saudi Arabia Losing Influence in Global Oil Markets

This article appeared online at TheNewAmerican.com on Tuesday, March 21, 2017:

As it continues to wrestle with declining oil prices worldwide, Saudi Arabia, the de facto head of the OPEC oil cartel, is giving up ground. It said a week ago that it would not allow any “free riders” to enjoy higher oil prices if they rose due to Saudi’s singular attempt to keep them up. A week later it was reported that the kingdom cut its production by 800,000 barrels per day, 60 percent below its agreement. So much for disclaimers against those “free riders” who continue to violate the agreement by exceeding their quotas.

Now comes news that the kingdom’s exports to the United States for the week ended March 10

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OPEC’s Influence Wanes as Members Cheat on Production Cuts

This article appeared online at TheNewAmerican.com on Monday, February 13, 2017:

OPEC’s report on how its members are complying with the production-cut agreement hammered out last fall came out on Monday. As expected, it reported cheating among its members.

Per the November 30 agreement, members allegedly agreed to cut production to 32.5 million bpd (barrels per day) of crude. Iraq, Venezuela, Angola, and Algeria cut their production modestly but less than they agreed, while Nigeria, Libya, and Iran produced more. Because Nigeria and Libya are exempt from the production cuts, Saudi Arabia, Kuwait, and UAE (United Arab Emirates) were forced to over-comply. The total produced by the cartel in January came in just below the target of 32.5 million bpd at 32.1 bpd.

Accompanying the report was a statement that crude oil price “gains were capped by increased drilling activity in the US.”

Those crude oil prices are likely to continue to drop despite OPEC’s best efforts to force them higher. The headwinds the cartel faces are monumental:

First, U.S. rig counts jumped to 591 last week, the highest since October 23, 2015 and an increase of 114 since the OPEC agreement.

 

Second, the Department of Energy announced it will be reducing the U.S. strategic oil reserve later this month through the sale of 10 million barrels.

 

Third, crude oil inventories jumped by nearly 14 million barrels last week, bringing the stockpile of private oil inventories close to an 80-year record level at 508 million barrels.

 

In addition, U.S. oil and gas companies are raising new money through Wall Street equity offerings at rates not seen since at least the year 2000. In January alone, 13 different offerings raised $6.64 billion. And they are using that new money not only to develop existing oil fields, but to acquire additional reserves through mergers and acquisitions (M&A). Last year, M&A activity totaled $24 billion. For 2017, oil and gas companies have already invested half that much and it’s only February.

All of this illustrates the decreasing influence of OPEC in directing the price of crude oil on the world market. Aside from the cheaters, OPEC is also faced with other forces over which it has no control, mostly in the oil industry of the United States.

Crude Drops 10 Percent; Price Decline Just Beginning

This article appeared online at TheNewAmerican.com on Wednesday, November 2, 2016:

Midday last Thursday, the price of crude oil for delivery in December touched $50, and it’s been all downhill since then. At noon on Wednesday crude oil futures touched $45 a barrel on news that inventories soared last week by the most in 34 years.

The market wasn’t expecting that. It was bad enough that the American Petroleum Institute (API) reported a supply increase nine times greater than analysts and observers were expecting last week. Those market seers were betting on an increase of a million barrels. Instead the API reported the increase was 9.3 million — a miss of gigantic proportions.

On Wednesday, however, the Energy Information Administration (EIA) reported that the API’s estimate was far too low:

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OPEC Fails to Agree as U.S. Energy Industry Ramps Up

This article appeared online at TheNewAmerican.com on Monday, October 31, 2016:

After 12 hours of effort to hash out an agreement to cut oil production that can be presented formally to the Organization of Petroleum Exporting Countries in November, 14 oil ministers meeting in Vienna over the weekend gave birth to — a goose egg. Without an agreement, the November 30 gathering is likely to be irrelevant, just as the cartel itself is becoming.

Every cartel eventually blows up due to members unwillingness to 

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OPEC Continues to lose its game of Chicken with US Energy Producers

This article was published by The McAlvany Intelligence Advisor on Monday, October 31, 2016:

It is said that, in a game of chicken, the one who flinches first loses. Last week Saudi Arabia flinched.

It went to the global bond market, hat in hand, hoping to raise $10 billion to slow down its liquidation of its foreign reserves. Last year those reserves dropped by $100 billion. With the market stronger than anticipated (or perhaps because they knew it was the most they could raise for quite a while) they raised $18 billion.

That $18 billion will be gone in two months, leaving investors holding a piece of paper that might not be redeemable for face value at maturity. What will be left is the increasingly irrelevant cartel that Saudi Arabia has led for the last 55 years.

For proof,

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Reality Sets In: OPEC Ready to Cut Production to Raise Oil Prices

This article appeared at TheNewAmerican.com on Friday, September 30, 2016:  

Wednesday’s announcement from OPEC about an agreement to cut production to shore up crude oil prices was met with both delight and scorn by observers. Exuded Phil Flynn, senior energy analyst at Price Futures Group:

This is the first OPEC deal in eight years! The cartel proved that it still matters even in the age of shale. This is the end of the “production war” and OPEC claims victory.

Bunk, said David Petraeus, the former CIA director who was forced to resign under a cloud in November 2012 and who subsequently was hired by Wall Street firm Kohlberg Kravis Roberts to chair the firm’s newly created KKR Global Institute:

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Jawboning Higher Oil Prices

This article was published by The McAlvany Intelligence Advisor on Wednesday, February 17, 2016:  

The art of jawboning has gotten such a bad reputation that even the Securities and Exchange Commission website decries it:

We deride “jawboning” as (a) government wagging a finger at business and labor to act with restraint, while government acts without restraint; or (b) government asking labor and business to do what is against their self-interest and in the public interest, which is usually ineffective, and when it works it rewards the greedy and penalizes the patriotic.

It used to work by issuing an implicit threat to accomplish a desired end. And on Tuesday, in the first few minutes of trading, traders of both stocks and oil bought the threat, causing prices to bounce higher at the open but then fade afterwards.

The threat was this, issued by the Russian Ministry of Energy following a brief meeting of worthies from Russia, Saudi Arabia, Qatar, and Venezuela:

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Following Saturday Night’s “Thermonuclear” Debate, Trump Remains Unscathed

This article was published by The McAlvany Intelligence Advisor on Monday, February 15, 2016:

Charles Krauthammer said he’d never seen anything like it:

If the previous Republican debates have been World War I or II, this is thermonuclear. I have not seen as many personal attacks or high temperature attacks as we saw in this debate….

 

We went here from WWE [World Wrestling Entertainment] to UFC [Ultimate Fighting Championship, or cage fighting].

 

This was a cage fight of the sort that I don’t think we have seen at the presidential level before.

Other observers were only slightly kinder. Caleb Howe, writing for RedState, said

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GOP Debate: Did We Learn Much Amidst the Acrimony?

This article appeared online at TheNewAmerican.com on Sunday, February 14, 2016:  

Planned Parenthood volunteers help bring the f...

Planned Parenthood volunteers help bring the fight for health insurance reform to the Ohio Statehouse in Columbus. (Photo credit: Wikipedia)

There was a moment of silence before the start of Saturday night’s GOP debate in remembrance of Supreme Court Justice Antonin Scalia who passed away on Saturday morning.

Once the debate started, however, not just silence but 

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As Oil Price Drops, Iraq Faces Existential Threat

This article appeared online at TheNewAmerican.com on Monday, February 1, 2016:  

In Iraq the culture of dependency is so great that the drop in the price of oil threatens the country’s very existence. With every Iraqi dependent upon the government for essentials like sugar, tea, rice and cooking oil, and the government dependent upon oil for more than 90 percent of its budget, the existential threat is real.

In January 2015 the government, headed up by President Fuad Masum and Prime Minister Haider al-Abadi, passed a budget that

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World Oil Glut Swells to 3 Billion Barrels, Driving Prices Down Further

This article appeared online at TheNewAmerican.com on Monday, November 16, 2015:  

Friday’s November report from the International Energy Agency (IEA) confounded so-called experts who have repeatedly predicted a bottom in oil prices. After West Texas Intermediate (WTI) briefly dropped below $40 a barrel in August, bulls were delighted to see prices for crude bounce up over $50 and stay there — right up until October.

The IEA report tried to corral all the complexities of the oil market into its two-page report:

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Thirty Years of Projecting the Lines

This article appeared online at TheNewAmerican.com on Tuesday, September 1, 2015:  

English: A composed satellite photograph of No...

This month marks the 30th anniversary of the The New American. On such an occasion, it is appropriate to reflect on the magazine’s track record, from the accuracy of our facts and the soundness of our analysis to the stories we unearthed and the influence we’ve exerted.

We are proud of our track record. But there is one recurring theme that seems to be particularly striking when reviewing the articles we’ve published, and that is the extent to which we have accurately projected the lines

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Behind Chattanooga: Radicalization, Gun-free Zones, and U.S. Foreign Policy

This article appeared online at TheNewAmerican.com on Friday, July 17, 2015:  

The "black flag of jihad" as used by...

The “black flag of jihad” as used by various Islamic terrorist organizations (since the late 1990s)

Narratives that Muhammad Youssef Abdulazeez was a nice, polite, well-behaved, friendly, and funny young man of 24 appeared all across the mainstream media following his murderous attack on a military recruiting center in Chattanooga on Thursday that left four dead and three wounded. According to the media and the president, he was “acting alone” as a “lone wolf.”

Precious little was being said about the possibility of him being influenced by radical elements of his faith calling for Muslims to wage war against unbelievers. The media focused instead on his background:

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.