Equedia Letter

Why Oil Prices are Falling: The Secret Deal Between the U.S. and Saudi Arabia14 min read

Comments (12)
  1. Stojan Ninkovic says:

    I foresee a scenario where Russia attacks Israel and draws the nations into an all or nothing war in that region. I suspect China will side with Russia. I don’t think this is too far away either.

  2. Michael5152 says:

    War is more and more likely as the world economy continues to sail through uncharted waters. I do not think that Stojan Ninkovic is correct in assuming/suspecting that Russia will attack Israel but, on the other hand, who would the Russians strike first as they are in a quandary with falling commodity prices.

    The US has really made a mess of things in its war for the greater Middle East, starting with Carter and continuing through with Reagan, Clinton and both Bushes. Now Obama has to try to clean up the 21st century Augean Stables. Personally, I would not want Obama’s job for any money because he is damned if he does and dmned if he doesn’t.

  3. Allen Nutik says:

    I have been most surprised that Europeans have not lined up in Jerusalem, cash in hand, to build an Israel to Europe nat gas pipeline through Cypress.
    That would cut Russia off at it’s knees, and would guarantee at nat gas feed from a friendly, western source….
    What have I missed?
    AEN, Montreal, Canada

    1. Michael5152 says:

      AEN, what you have missed is the hostile propaganda generated towards Israel in Western European capitals and that includes the USA and the UK

  4. Peter says:

    The Russians are fully aware and would have prepared for such strategies over the years having studied Gata’s research and sent attendees to the Yukon Gold Meeting some years ago.
    They definately have read the following which piqued their action in sending the attendees :


    Remember that Jim Sinclair has noted that Germany would be over the moon to be able to pay for energy directly in Euro.

    Also, remember that the Shanghai Co-operation Council is a new economic and financial bloc and thus Russia may not be acting the lone wolf as in the pass anymore

    We live in interesting times.


  5. Gerald McConnell says:

    Reasons why oil prices are dropping:
    1. Obama is against Keystone XL because he wasts the oil to be still in the ground when his Islams take over Canada and the United State.
    2. As long as prices stay high in the U.S. the people will keep DEMANDING that Obama apporove of the Keystone XL. Only a large oil country like Saudi Arabia could solve that problem by se;;omg oil to the U.S. at much lower prices, which they are doing.
    3. When the gasoline and heating oil prices drop to a reasonable amount to quiet the public. the drop will stop and remain constant for a long period during which time the Islamic terrorists will get their attacks moving on a large scale to take over Canada and the U.S..
    4. At the point when both Canada and the U.S. are taken over then the Islamic terrorists will have no one to capture escept other Islamic countries; which will surely happen.
    5. However, I do not think that the Islamic terrorists will succeed in taking over Canada and the U.S. and I think the suicidal efforts will fail to capture and in the meantime many other Islamic captives will begin a world-wide rebellion and Islam will be done for 10,000 years.

    1. arctic_front says:

      Sir, I believe you have watched too many Tom Clancy movies.
      Russia/China is the cartel to watch. Anything in the middle east, ISIS, included is mostly a nuisance, with the exception of a nuclear Iran. It’s nothing a reasonable coalition of Israel, the Saudi’s and the U.S. can’t handle easily.
      However, a much rattled Russian Bear with China as a silent partner can be something very dangerous.
      They need each other very much. Russia needs hard currency, as they always seem to be in need of, and China needs a stable source of energy. China wants to find a ‘strategic’ source of gas/oil safe from regional hostilities in the Middle East. Russia may lose the fight over energy supply to western Europe, but if they can build the infrastructure needed to ship their product east, they will be fine.
      It is just the here-and-now that creates the problem. Until the pipelines to China are built, and the pipelines from Qatar to western Europe, or from Cypress, then this cat and mouse game will continue.
      The Shale windfall of energy for the U.S. is the wild-card nobody was expecting. Being the largest consumer, in good times and bad, the energy model was set to revolve around the U.S. market. That profile doesn’t exist anymore. The game of musical chairs begins.

      If indeed there is a secret agreement between the Saudi’s and the U.S. then the pay-back expected by the Saudi’s is not going to be Syria, but the destruction of Iran’s nuclear ambitions. I think the Saudi’s are trying to keep time in-place until Obama’s replacement (one with actual BALLS) arrives in 2016.

      My un-educated take on this is expect low oil prices to continue until the new U.S. President is elected or Putin does something really stupid to upset the apple-cart. Either case has merits. Nobody should get or be, too comfortable just yet.

      Buy oil stocks and wait.

  6. Hemchand Rewah says:

    I love this straightforward write up about the politics involving global oil and energy and I would appreciate if I can receive the weekly letter.

  7. Bert C. says:

    WW2 began when US strangled Japan’s access to SEA oil.
    Will history repeat itself if US pushes Russia into the same corner, albeit not from lack of oil, but, “financial strangulation”?

  8. stojan ninkovic says:

    If you get the chance when in Berlin next go to the new Jewish Museum. It chronicles the history of the Jews in Europe since history was chronicled. The thing that stands out is the fact the Jews were scapegoated from the beginning. They were blamed for every plague and every catastrophe that afflicted society. I think the same is happening today. The idea that the world would be a better place without the Jews is gaining traction and I don’t see it as too much of a stretch for Russia to seek to invade Israel by way of Turkey to the north. Certainly Syria would welcome that. This will draw the US into the battle and possibly China on Russia’s side. Why would Russia do this? The vast oil and mineral deposits under the Dead Sea. There’s evidence the world’s largest untapped deposits are sitting there. Also Putin would like to score points with the millions of Israel haters out there.

  9. InterestedParty says:

    Excellent article. Thank you for enlightening.

  10. Andrew Carmichael says:

    Whilst I dont doubt the convenience of a low oil price to the West this article sounds like a load of tosh to me. If it’s so secret a deal how come you seem to know so much about it? Sounds like you might simply be trying to inflate the market to try and dump your own stock. Fact of the matter is crude has been over-valued for years -artificially held high by the oil producing Cartel. What we are seeing now is simply a market re-adjustment following on from deep global recession and near collapse of the global banking system.

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