Saudi Arabia is taking steps to increase oil production:
March 11, 2020
OPEC kingpin Saudi Arabia unveiled plans Wednesday to dramatically ramp up oil production, raising the stakes of an all-out price war with non-OPEC leader Russia.
State-owned oil behemoth Saudi Aramco said Wednesday that it had been asked by the Saudi energy ministry to raise its production capacity to 13 million barrels per day (bpd), up from 12 million bpd at present.
The oil-rich kingdom has been pumping around 9.7 million bpd in recent months, but it has plenty of spare capacity to pump more crude, with hundreds of millions of barrels also in storage.
“This bold move to attempt to order production to 13 (million) barrels confirms that Saudi is trying to apply maximum pressure on both Russia and the U.S.,” Cailin Birch, a global economist at the Economist Intelligence Unit (EIU), told CNBC via email on Wednesday.
“By sending signals that they will flood the market as soon as possible, they may be hoping to either force Russia back to the negotiating table or to prompt a wave of bankruptcies and investment cuts in the U.S. that would have a noticeable impact on shale production,” Birch said. …
“Saudi could probably weather the storm with oil prices below $40/b for the rest of the year, but this will be painful for its economy as well. It appears that they’re trying to shock the market quickly, in the hope that it stabilizes later in the year,” the EIU’s Birch said.
Saudi-Initiated All-Out Oil War Could Lead To Collapse Of Kingdom Itself
Saudi Arabia launched an all-out oil war offering unprecedented discounts and flooding the market in an attempt to capture a larger share and defeat other oil producers. This “scorched earth” approach caused the biggest oil price fall since the war in the Persian Gulf in 1991.
It all began on March 8 when Riyadh cut its April pricing for crude sales to Asia by $4-$6 a barrel and to the U.S. by $7 a barrel. The Kingdom expanded the discount for its flagship Arab Light crude to refiners in northwest Europe by $8 a barrel offering it at $10.25 a barrel under the Brent benchmark. In comparison, Russia’s Urals crude trades at a discount of about $2 a barrel under Brent. These actions became an attack at the ability of Russia to sell crude in Europe. The Russian ruble immediately plummeted almost 10% falling to its lowest level in more than four years.
Another side that suffered from Saudi actions is Iran. The Islamic country is facing a strong US sanctions pressure and often selling its oil via complex schemes and with notable discounts already. …
In this case, the real goal of the Saudi campaign is not only to secure larger share of the oil market and punish Moscow for its unwillingness to accept the proposed OPEC+ deal, but to deliver a powerful blow to Washington’s geopolitical opponents: Russia and Iran. Pro-Western and anti-government forces existing in both Russia and Iran would try to exploit this situation to destabilize the internal situation in the countries.
On the other hand, Saudi Arabia may soon find out that its actions have backfired. Such economic and geopolitical games amid the acute conflict with Iran, military setbacks in Yemen and the increasing regional standoff with the UAE could cost too much for the Kingdom itself. …
Before getting back to Saudi Arabia, notice the following about Russia: they also fell by more than 3%. European markets were down 2-3% in early trading.
Russia Targets U.S. Shale With Oil Price War
Russia refused to participate in production cuts that would reduce output by some 1.5 million barrels per day (bpd). This is a familiar attempt to protect market share and to squeeze out American shale and other higher cost producers, breaking up a quasi-cartel arrangement with the Kingdom. …
What seems apparent is that the Kremlin has been planning this aggressive move against American shale producers for a while now. In October 2019, Russia’s Finance Minister Anton Siluanov claimed that the country would be able to sustain the effect of the oil price drop to $20 or $30 per barrel for three years …
Hence, this is not a purely economic measure taken by the Kremlin, but rather a geopolitical one. What might have provoked Russia to retaliate against American oil producers is the U.S. sanctions imposed on Rosneft less than a month ago for transporting Venezuelan oil, which is seen in Washington as propping up the Maduro dictatorship. …
Let me add that I have read other articles that basically state that Russia has had it with US sanctions, is upset that the US is now the world’s leading petroleum producer, it wants to regain market share, and some believe it can outlast Saudi Arabia related to lower oil prices.
Getting back to Saudi Arabia, while its Kingdom may or may not collapse, the biblical reality is that it will change.
And, economic pressures from lower oil prices may well be a factor.
Saudi Arabia will, for a time, be part of a coming confederation that will be led by the King of the South of biblical prophecy. Notice the following:
40 At the time of the end the king of the South shall attack him; and the king of the North shall come against him like a whirlwind, with chariots, horsemen, and with many ships; and he shall enter the countries, overwhelm them, and pass through. 41 He shall also enter the Glorious Land, and many countries shall be overthrown; but these shall escape from his hand: Edom, Moab, and the prominent people of Ammon. 42 He shall stretch out his hand against the countries, and the land of Egypt shall not escape. (Daniel 11:40-42, NKJV).
43 and he hath ruled over treasures of gold and of silver, and over all the desirable things of Egypt, and Lubim and Cushim are at his steps. (Daniel 11:43, Young’s literal translation)
Before going further, it should perhaps be mentioned that the Muslim Brotherhood wants an Islamic confederation with a leader over territories like the ones that will be rued by the King of the South (watch also The Muslim Brotherhood and the Rise of the King of the South).
Some of the peoples mentioned in Daniel 11:40-43 are Arabic as the late WCG evangelist Raymond McNair once wrote:
Daniel 11 also mentions some of the Mideast peoples who will be involved in that struggle among the nations at the close of this age. The belligerents will include the “King of the North,” the leader of the European Union (or its final outgrowth, called the “Beast”). The “King of the South” (an Islamic leader—apparently from Egypt {or} some other Muslim state) is also referred to. The following lands/peoples are specifically mentioned: Egypt, the Holy Land (Israel/Palestine), the Ethiopians (modern Cushites, south of Egypt), Libya, Edom, Moab and Ammon. Many descendants of the ancient peoples known as Edomites or Idumeans now live in the West Bank, Jordan, Iraq, Turkey, Syria, Arabia, Yemen, the Persian Gulf states, etc. (McNair R. Solving the Arab-Israeli Impasse! Copyright Raymond F. McNair 2005, Church of God—21st Century).
The old Worldwide/Radio Church of God further taught that Saudi Arabia would be part of a coalition warned about in the 83rd Psalm:
They have said, Come, and let us cut them off from being a nation; that the name of Israel may be no more in remembrance. For they have consulted together with one consent: they are confederate against thee: The tabernacles of Edom [Esau or modern-day Turkey, a non-Arab but Islamic nation] and the Ishmaelites [Saudi Arabia]; of Moab [part of Jordan] and the Hagarenes [anciently these people dwelt in the land known as Syria today]; Gebal [Lebanon], and Ammon [modern Jordan], and Amalek [part of the Turks]; the Philistines [the modern Palestinian Arabs] with the inhabitants of Tyre [Lebanon]; Assur [whose descendants, the Assyrians, migrated to Germany] also is joined with them: (Stump K. The Arab World in Prophecy. Plain Truth, December 1979).
Turn to the astounding prophecy found in Psalm 83:1-8. David, inspired of God, predicted the coming time when ALL of Israel’s enemies would join together in an effort to crush out even the name “Israel” from the face of the earth! (Verse 4) “For they have consulted together with one consent: they are confederate against thee…” (verse 5). Notice the nations making up this confederation. “Edom [Turkey], and the Ishmaelites [Saudi Arabia]; Moab [Jordan], and the Hagarenes [they anciently dwelt in the land known as Syria today]; Gebal {Lebanon}, and Ammon [Jordan] and Amalek; the Philistines with the inhabitants of Tyre; Assur [whose descendants migrated to Germany] is joined with them; they have helped the children of Lot” {Moab and Ammon in modern Jordan). Here we see that the Arab nations mentioned are allied with Germany (Assur) which we know from other prophecies will be the military leader — naturally so — of a United States of Europe…Egypt…will provoke the prophesied United Europe (Dan. 11:40). This European power — called the “king of the north” in Daniel 11 … “And the land of Egypt shall not escape”(Boraker R. SYRIA RAIDS ISRAEL – Where Is It Leading? Plain Truth. November 1966)
Now notice the following scriptures, which are also related to a coming King of the South:
1 The word of the LORD came to me: 2 “Son of man, prophesy and say: ‘This is what the Sovereign LORD says:
“‘Wail and say, “Alas for that day!” 3 For the day is near, the day of the LORD is near- a day of clouds, a time of doom for the nations. 4 A sword will come against Egypt, and anguish will come upon Cush. When the slain fall in Egypt, her wealth will be carried away and her foundations torn down.
5 Cush and Put, Lydia and all Arabia, Libya and the people of the covenant land will fall by the sword along with Egypt.
6 “‘This is what the LORD says:
“‘The allies of Egypt will fall and her proud strength will fail. From Migdol to Aswan they will fall by the sword within her, declares the Sovereign LORD. 7 “‘They will be desolate among desolate lands, and their cities will lie among ruined cities. 8 Then they will know that I am the LORD, when I set fire to Egypt and all her helpers are crushed.
9 “‘On that day messengers will go out from me in ships to frighten Cush out of her complacency. Anguish will take hold of them on the day of Egypt’s doom, for it is sure to come (Ezekiel 30:1-9, NIV).
The expression “all Arabia” would seemingly have to include Saudi Arabia. Now, since it seems more likely that the coming King of the South will be an Egyptian of Arabic heritage as opposed to being someone from Saudi Arabia, Saudi Arabia looks to be a supporter of the coming King of the South.
As I have written for years, the situation in the Middle East and North Africa must change for various biblical prophecies to be fulfilled.
Changes will occur in Saudi Arabia and its leaders will, for a time at least, support the coming King of the South.
Properly understood biblical prophecies are coming to pass.
And yes, these latest oil production moves by Saudi Arabia and Russia may well be a factor in stirring up the situation in Saudi Arabia to make temporary acceptance into the coming Islamic confederation a reality.
Furthermore, we are getting much closer to the time for this to happen.
