(THIS ARTICLE IS COURTESY OF THE HINDUSTAN TIMES OF INDIA)
India may discuss oil issues with Pompeo
During Pompeo’s visit, New Delhi will seek Washington’s cooperation in getting reliable and affordable energy supply, especially after US sanctions that prohibited the import of Iranian crude from May, two government officials said.
INDIAUpdated: Jun 25, 2019 05:28 IST
Hindustan Times, New Delhi
The recent tussle between the US and Iran has further aggravated the situation that could adversely impact major oil consumers such as India, said the officials cited above.(AFP)
India may discuss with US secretary of state Mike Pompeo a host of issues crucial for its energy security, including oil price volatility due to rising tensions between Tehran and Washington, disadvantages in purchasing American crude and technical issues arising due to sanctions that threaten India’s strategic projects, said officials aware of the developments.
During Pompeo’s visit, New Delhi will seek Washington’s cooperation in getting reliable and affordable energy supply, especially after US sanctions that prohibited the import of Iranian crude from May, two government officials said. India, which is a net importer of energy, is a victim of volatility in crude prices that is often caused because of geo-political reasons.
The recent tussle between the US and Iran has further aggravated the situation that could adversely impact major oil consumers such as India, said the officials cited above.
Petroleum minister Dharmendra Pradhan recently spoke to US secretary of energy Rick Perry and raised these issues. During the telephonic conversation, Pradhan emphasised the impact of price volatility on Indian consumers and stressed the important role that the US could play in bringing global price stability, officials said. International crude oil prices soared after Tehran allegedly shot down an American drone on Thursday, which deepened tensions US-Iran tensions.
Traditionally, Iran has been a major crude oil supplier for India to meet almost 10% of its annual requirements. India, which has already stopped purchasing Iranian crude due to the sanction, is facing problems in meeting the shortfall. “We are yet to get suitable alternative. Iranian crude is not only of good quality but also cheaper as Tehran always supplied crude on lucrative commercial terms,” said one of the officials quoted above. Unhindered crude oil imports on economic terms are crucial for India’s energy security as it imports more than 80% crude it processes.
Rajnish Gupta, EY India associate partner (tax and economic policy group), said, “Threat of reduction in supply of crude oil from any significant producer of oil will tighten the markets and is likely to cause price volatility, as it happened last week…any reduction in supplies from any country needs to be made up by increased production elsewhere. Increase in production or change in source requires time. Therefore from India’s perspective, a transition period is required.”
The other issue that is expected to be discussed is the possibility of crude oil supply from the US as an alternative to Iranian crude, the officials said.
India’s state-run and private refiners said no government could force them to buy oil from the US on terms that are uneconomical. “Each crude or shale oil have different assay, based on that refiners extract value. One would buy crude oil or shale oil depending on the value one would get. It is purely commercial consideration,” chief executive of one refinery said.
LONDON — Oil tankers came under attack on Thursday in the Gulf of Oman, the Iranian news media and a shipping industry official said on Thursday, a month after four tankers were damaged in the same waterway, a vital thoroughfare for much of the world’s oil.
The Iranian state news media reported that multiple tankers had been seriously damaged. A shipping industry official, who was not authorized to speak publicly to the news media, said that at least two tankers had been hit. The nature of the attack was not clear.
“We are aware of the reported attack on tankers in the Gulf of Oman,” the United States Fifth Fleet said in a brief statement. “U.S. Naval Forces in the region received two separate distress calls at 6:12 a.m. local time and a second one at 7 a.m. U.S. Navy ships are in the area and are rendering assistance.”
An arm of the British Navy, United Kingdom Maritime Trade Operations, reported that “U.K. and its partners are currently investigating” an incident in the gulf, about 40 miles east of the United Arab Emirates port of Fujairah, but offered no details.
Oil prices spiked early Thursday on the news.
In the region, Iran, on the northern side of the Persian Gulf and the Gulf of Oman, has long been at odds with its adversaries and neighbors to the south, Saudi Arabia and the United Arab Emirates. They support opposing sides in the civil war in Yemen.
The attacks in May worsened those tensions, raising concerns that they might lead to a violent clash between regional powers.
One of the tankers involved in the latest attack, M. T. Front Altair, was on fire, and the crew had abandoned ship and been rescued, according to the industry official. The ship, registered in the Marshall Islands, was carrying naphtha, a petroleum product, he said.
He said that contact had been lost with another tanker, the Panamanian-flagged Kokuka Courageous. There were news reports that it, too, was on fire and had been abandoned.
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Many years ago I saw a TV episode of “The Jefferson’s” program where George the main character had died, but 20 years later he got to come back as a ghost so he checked in on his family. The one other part of the program I remember was a little girl coming into the room and she asked her dad for five dollars so that she could get and ice cream and her dad said “only five dollars”? That line was put into the program for the laugh factor yet those words ring with and obvious truth of the deflation of our own dollar. At the time of this program you could get and ice cream for about 75 cents, now days quite a few of the treats cost between $2.75-3.50, the joke is on ourselves. Fake money, that which we strive and die for all of our lives. When your Pepsi cost $5.00 and your burger cost $15.00 what good is a $8.00 per hour job? Twenty years from now when we are maybe making $18.00 to $20.00 per hour and a Pepsi is $15 and a burger is $30 how do people survive the real costs of living?
I have believed for a long time now that Deflation is absolutely required within the worlds most industrialized nations which of course includes us here in the U.S.. I believe that the biggest inflation maker in our nation is generated from the very base level of Government, the local level Politicians. These Politicians are the ones who are always needing more revenue and the local home owner is the venue of which they suck from. About 20 or so odd years ago I heard part of and interview of Tom Jones with a lady commentator, I think it was Ms Walters but I’m not positive of that. Mr Jones spoke of the home that he and his wife had lived in for twenty years, he said he paid one million for it twenty years ago but now this same house is now worth ten millions so says the tax collector. Taxes go up, people have to make more money to pay these taxes or one of many different Government agency’s will take “your property” from you. When the prices of houses keep going up it makes it where the majority of people don’t believe they will ever have and actual house of their own. I believe that one of the necessary steps Our Government should do when they are gathering data on everything that breathes and many that don’t is to get rid of the Out Liars and the liars.
Deflation is and absolute requirement that at some point we as a nation will have to live through. Is the dropping oil costs the trigger that topples the phony houses of the .01% who reap fortunes on the bones of those they have crushed beneath them on their unending desire to always have more? If We The People want a more truthful stat on things like average wages or the value of houses in our area I believe the stats people need to always get rid of the Out liars. I believe we would get a better state of the Nation figures if for example on value of houses if the top 10% and the bottom 10% were taken out of the equation you will get more truthful results. I’m not saying that these people don’t count they do, every one of them count. But we need more truthful numbers if we want to know what the true state of the Union is, we need to get rid of all the obvious Out liars. When the price of a nation’s fuel is dropping it should be a great thing for business and the people of that nation. Instead the stock market is stumbling because of it. When people lose their jobs the value of the company goes up just like with mergers, then their stock value goes up. Things are backwards in our society folks, deflation of the housing and vehicle markets (as examples) are necessary otherwise the world we are leaving our children will be where they can’t afford toilet paper. The cost of absolutely everything must reach a stage where it’s cost quits going up. If I make $100 per hour but my Pepsi cost $50 and my cheese burger is $90 what good is the $100 per hour? This balloon has got to pop at sometime in the future, is it now? The world oil glut is getting harder to hide, is this the fire cracker that pops the balloon?
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He has slashed the state budget, frozen government contracts and reduced the pay of civil employees, all part of drastic austerity measures as the Kingdom of Saudi Arabia is buffeted by low oil prices.
But last year, Mohammed bin Salman, Saudi Arabia’s deputy crown prince, saw a yacht he couldn’t resist.
While vacationing in the south of France, Prince bin Salman spotted a 440-foot yacht floating off the coast. He dispatched an aide to buy the ship, the Serene, which was owned by Yuri Shefler, a Russian vodka tycoon. The deal was done within hours, at a price of approximately 500 million euros (roughly $550 million today), according to an associate of Mr. Shefler and a Saudi close to the royal family. The Russian moved off the yacht the same day.
It is the paradox of the brash, 31-year-old Prince bin Salman: a man who is trying to overturn tradition, reinvent the economy and consolidate power — while holding tight to his royal privilege. In less than two years, he has emerged as the most dynamic royal in the Arab world’s wealthiest nation, setting up a potential rivalry for the throne.
The rise of Prince bin Salman has shattered decades of tradition in the royal family, where respect for seniority and power-sharing among branches are time-honored traditions. Never before in Saudi history has so much power been wielded by the deputy crown prince, who is second in line to the throne. That centralization of authority has angered many of his relatives.
His seemingly boundless ambitions have led many Saudis and foreign officials to suspect that his ultimate goal is not just to transform the kingdom, but also to shove aside the current crown prince, his 57-year-old cousin, Mohammed bin Nayef, to become the next king. Such a move could further upset his relatives and — if successful — give the country what it has never seen: a young king who could rule the kingdom for many decades.
Crown Prince bin Nayef, the interior minister and longtime counterterrorism czar, has deep ties to Washington and the support of many of the older royals. Deciphering the dynamics of the family can be like trying to navigate a hall of mirrors, but many Saudi and American officials say Prince bin Salman has made moves aimed at reaching into Prince bin Nayef’s portfolios and weakening him.
This has left officials in Washington hedging their bets by building relationships with both men, unsure who will end up on top. The White House got an early sign of the ascent of the young prince in late 2015, when — breaking protocol — Prince bin Salman delivered a soliloquy about the failures of American foreign policy during a meeting between his father, King Salman, and President Obama.
Many young Saudis admire him as an energetic representative of their generation who has addressed some of the country’s problems with uncommon bluntness. The kingdom’s news media have built his image as a hardworking, businesslike leader less concerned than his predecessors with the trappings of royalty.
Others see him as a power-hungry upstart who is risking instability by changing too much, too fast.
Months of interviews with Saudi and American officials, members of the royal family and their associates, and diplomats focused on Saudi affairs reveal a portrait of a prince in a hurry to prove that he can transform Saudi Arabia. Prince bin Salman declined multiple interview requests for this article.
But the question many raise — and cannot yet answer — is whether the energetic leader will succeed in charting a new path for the kingdom, or whether his impulsiveness and inexperience will destabilize the Arab world’s largest economy at a time of turbulence in the Middle East.
Tension at the Top
Early this year, Crown Prince bin Nayef left the kingdom for his family’s villa in Algeria, a sprawling compound an hour’s drive north of Algiers. Although he has long taken annual hunting vacations there, many who know him said that this year was different. He stayed away for weeks, largely incommunicado and often refusing to respond to messages from Saudi officials and close associates in Washington. Even John O. Brennan, the C.I.A. director, whom he has known for decades, had difficulty reaching him.
The crown prince has diabetes, and suffers from the lingering effects of an assassination attempt in 2009 by a jihadist who detonated a bomb he had hidden in his rectum.
But his lengthy absence at a time of low oil prices, turmoil in the Middle East and a foundering Saudi-led war in Yemen led several American officials to conclude that the crown prince was fleeing frictions with his younger cousin and that the prince was worried his chance to ascend the throne was in jeopardy.
Since King Salman ascended to the throne in January 2015, new powers had been flowing to his son, some of them undermining the authority of the crown prince. King Salman collapsed the crown prince’s court into his own, giving Prince bin Salman control over access to the king. Prince bin Salman also hastily announced the formation of a military alliance of Islamic countries to fight terrorism. Counterterrorism had long been the domain of Prince bin Nayef, but the new plan gave no role to him or his powerful Interior Ministry.
The exact personal relationship between the two men is unclear, fueling discussion in Saudi Arabia and in foreign capitals about who is ascendant. Obscuring the picture are the stark differences in the men’s public profiles. Prince bin Nayef has largely stayed in the shadows, although he did visit New York last month to address the United Nations General Assembly before heading to Turkey for a state visit.
His younger cousin, meanwhile, has worked to remain in the spotlight, touring world capitals, speaking with foreign journalists, being photographed with the Facebook chairman Mark Zuckerberg and presenting himself as a face of a new Saudi Arabia.
“There is no topic that is more important than succession matters, especially now,” said Joseph A. Kechichian, a senior fellow at the King Faisal Center for Research and Islamic Studies in Riyadh, who has extensive contacts in the Saudi royal family. “This matters for monarchy, for the regional allies and for the kingdom’s international partners.”
Among the most concrete initiatives so far of Prince bin Salman, who serves as minister of defense, is the Saudi-led war in Yemen, which since it was begun last year has failed to dislodge the Shiite Houthi rebels and their allies from the Yemeni capital. The war has driven much of Yemen toward famine and killed thousands of civilians while costing the Saudi government tens of billions of dollars.
The prosecution of the war by a prince with no military experience has exacerbated tensions between him and his older cousins, according to American officials and members of the royal family. Three of Saudi Arabia’s main security services are run by princes. Although all agreed that the kingdom had to respond when the Houthis seized the Yemeni capital and forced the government into exile, Prince bin Salman took the lead, launching the war in March 2015 without full coordination across the security services.
The head of the National Guard, Prince Mutaib bin Abdullah, had not been informed and was out of the country when the first strikes were carried out, according to a senior National Guard officer.
The National Guard is now holding much of the Yemeni border.
American officials, too, were put off when, just as the Yemen campaign was escalating, Prince bin Salman took a vacation in the Maldives, the island archipelago off the coast of India. Several American officials said Defense Secretary Ashton B. Carter had trouble reaching him for days during one part of the trip.
The prolonged war has also heightened tensions between Prince bin Salman and Prince bin Nayef, who won the respect of Saudis and American officials for dismantling Al Qaeda in the kingdom nearly a decade ago and now sees it taking advantage of chaos in Yemen, according to several American officials and analysts.
“If Mohammed bin Nayef wanted to be seen as a big supporter of this war, he’s had a year and a half to do it,” said Bruce Riedel, a former Middle East analyst at the C.I.A. and a fellow at the Brookings Institution.
Near the start of the war, Prince bin Salman was a forceful public advocate for the campaign and was often photographed visiting troops and meeting with military leaders. But as the campaign has stalemated, such appearances have grown rare.
The war underlines the plans of Prince bin Salman for a brawny foreign policy for the kingdom, one less reliant on Western powers like the United States for its security. He has criticized the thawing of America’s relations with Iran and comments by Mr. Obama during an interview this year that Saudi Arabia must “share the neighborhood” with Iran.
This is part of what analysts say is Prince bin Salman’s attempt to foster a sense of Saudi national identity that has not existed since the kingdom’s founding in 1932.
“There has been a surge of Saudi nationalism since the campaign in Yemen began, with the sense that Saudi Arabia is taking independent collective action,” said Andrew Bowen, a Saudi expert at the Wilson Center in Washington.
Still, Mr. Bowen said support among younger Saudis could diminish the longer the conflict dragged on. Diplomats say the death toll for Saudi troops is higher than the government has publicly acknowledged, and a recent deadly airstrike on a funeral in the Yemeni capital has renewed calls by human rights groups and some American lawmakers to block or delay weapons sales to the kingdom.
People who have met Prince bin Salman said he insisted that Saudi Arabia must be more assertive in shaping events in the Middle East and confronting Iran’s influence in the region — whether in Yemen, Syria, Iraq or Lebanon.
Brian Katulis, a Middle East expert at the Center for American Progress in Washington, who met the prince this year in Riyadh, said his agenda was clear.
“His main message is that Saudi Arabia is a force to be reckoned with,” Mr. Katulis said.
A Swift Ascent
Saudi Arabia is one of the world’s few remaining absolute monarchies, which means that Prince bin Salman was given all of his powers by a vote of one: his own father.
The prince’s rise began in early 2015, after King Abdullah died of lung cancer and King Salman ascended to the throne. In a series of royal decrees, the new king restructured the government and shook up the order of succession in the royal family in ways that invested tremendous power in his son.
He was named defense minister and head of a powerful new council to oversee the Saudi economy as well as put in charge of the governing body ofSaudi Aramco, the state oil company and the primary engine of the Saudi economy.
More important, the king decreed a new order of succession, overturning the wishes of King Abdullah and replacing his designated crown prince, Muqrin bin Abdulaziz, with Prince bin Nayef.
While all previous Saudi kings and crown princes had been sons of the kingdom’s founder, Prince bin Nayef was the first of the founder’s grandsons to be put in line. Many hailed the move because of the prince’s success at fighting Al Qaeda and because he has only daughters, leading many to hope he would choose a successor based on merit rather than paternity.
The bigger surprise was that the king named Prince bin Salman deputy crown prince. He was 29 years old at the time and virtually unknown to the kingdom’s closest allies.
This effectively scrapped the political aspirations of his older relatives, many of whom had decades of experience in public life and in key sectors like defense and oil policy. Some are still angry — although only in private, out of deference to the 80-year-old king.
Since then, Prince bin Salman has moved quickly to build his public profile and market himself to other nations as the point man for the kingdom.
Domestically, his focus has been on an ambitious plan for the future of the kingdom, called Vision 2030. The plan, released in April, seeks to transform Saudi life by diversifying its economy away from oil, increasing Saudi employment and improving education, health and other government services. A National Transformation Plan, laying out targets for improving government ministries, came shortly after.
Read in one way, the documents are an ambitious blueprint to change the Saudi way of life. Read in another, they are a scathing indictment of how poorly the kingdom has been run by Prince bin Salman’s elders.
Official government development plans going back decades have called for reducing the dependence on oil and increasing Saudi employment — to little effect. And in calling for transparency and accountability, the plan acknowledges that both have been in short supply. Diplomats and economists say much about the Saudi economy remains opaque, including the cost of generous perks and stipends for members of the royal family.
The need for change is greater now, with global oil prices less than half of what they were in 2014 and hundreds of thousands of young Saudis entering the job market yearly. Prince bin Salman has called for a new era of fiscal responsibility, and over the last year, fuel, water and electricity prices have gone up while the take-home pay of some public sector employees has been cut — squeezing the budgets of average Saudis. He has also said the government will sell shares of Saudi Aramco, believed to be the world’s most valuable company.
Many Saudis say his age and ambition are benefits at a time when old ways of thinking must be changed.
“He is speaking in the language of the youth,” said Hoda al-Helaissi, a member of the kingdom’s advisory Shura Council, which is appointed by the king. “The country for too long has been looking through the lenses of the older generation, and we need to look at who is going to carry the torch to the next generation.”
Some of his initiatives have appeared ham-handed. In December, he held his first news conference to announce the formation of a military alliance of Islamic countries to fight terrorism. But a number of countries that he said were involved soon responded that they knew nothing about it or were still waiting for information before deciding whether to join.
Others have been popular. After Prince bin Salman called for more entertainment options for families and young people, who often flee the country on their vacations, the cabinet passed regulations restricting the powers of the religious police. An Entertainment Authority he established has planned its first activities, which include comedy shows, pro wrestling events and monster truck rallies.
The prince has kept his distance from the Council of Senior Scholars, the mostly elderly clerics who set official religious policy and often release religious opinions that young Saudis mock as being out of touch with modern life.
Instead, he has sought the favor of younger clerics who boast millions of followers on social media. After the release of Vision 2030, Prince bin Salman held a reception for Saudi journalists and academics that included a number of younger, tech-savvy clerics who have gone forth to praise the plan.
Prince bin Salman’s prominence today was difficult to predict during his early years, spent largely below the radar of Western officials who keep track of young Saudi royals who might one day rule the kingdom.
Several of King Salman’s other sons, who studied overseas to perfect foreign languages and earn advanced degrees, built impressive résumés. One became the first Arab astronaut, another a deputy oil minister, yet another the governor of Medina Province.
Prince bin Salman stayed in Saudi Arabia and does not speak fluent English, although he appears to understand it. After a private school education, he studied law at King Saud University in Riyadh, reportedly graduating fourth in his class. Another prince of the same generation said he had gotten to know him during high school, when one of their uncles hosted regular dinners for the younger princes at his palace. He recalled Prince bin Salman being one of the crowd, saying he liked to play bridge and admired Margaret Thatcher.
King Salman is said to see himself in his favorite son, the latest in the lineage of a family that has ruled most of the Arabian Peninsula for eight decades.
In 2007, when the United States ambassador dropped in on King Salman, then a prince and the governor of Riyadh Province, to say farewell at the end of his posting, the governor asked for help circumventing America’s stringent visa procedures. His wife could not get a visa to see her doctor, and although his other children were willing to submit to the visa hurdles, “his son, Prince Mohammed, refused to go to the U.S. Embassy to be fingerprinted ‘like some criminal,’” according to a State Department cable at the time.
Prince bin Salman graduated from the university that year and continued to work for his father, who was named defense minister in 2011, while dabbling in real estate and business.
Many members of the royal family remain wary of the young prince’s projects and ultimate ambitions. Some mock him as the “Prince of the Vision” and complain about his army of well-paid foreign consultants and image-makers.
Other are annoyed by the media cell he created inside the royal court to promote his initiatives, both foreign and domestic. Called the Center for Studies and Media Affairs, the group has focused on promoting a positive story about the Yemen war in Washington and has hired numerous Washington lobbying and public affairs firms to assist in the effort.
Inside the kingdom, the government has largely succeeded in keeping criticism — and even open discussion — of the prince and his projects out of the public sphere. His family holds sway over the parent company of many Saudi newspapers, which have breathlessly covered his initiatives, and prominent Saudi editors and journalists who have accompanied him on foreign trips have been given up to $100,000 in cash, according to two people who have traveled with the prince’s delegation.
Meanwhile, Saudi journalists deemed too critical have been quietly silenced through phone calls informing them that they are barred from publishing, and sometimes from traveling abroad.
In June, a Saudi journalist, Sultan al-Saad al-Qahtani, published an article in Arabic on his website, The Riyadh Post, in which he addressed the lack of discussion about Prince bin Salman’s rise.
“You can buy tens of newspapers and hundreds of journalists, but you can’t buy the history that will be written about you,” he wrote.
He said that the prince’s popularity among Saudis was based on a “sweeping desire for great change” and that they loved him based on the hope that he would “turn their dreams into reality.”
In that lay the risk, Mr. Qahtani wrote: “If you fail, this love withers quickly, as if it never existed, and is replaced by a deep feeling of frustration and hatred.”
The site was blocked the next day, Mr. Qahtani said, for the third time in 13 months. (It is now back up, at a new address.)
As sweeping and long-term as Prince bin Salman’s initiatives are, they may hang by the tenuous thread of his link to his father, who has memory lapses, according to foreign officials who have met with him. Even the prince’s supporters acknowledge that they are not sure he will retain his current roles after his father dies.
In the meantime, he is racing against time to establish his reputation and cement his place in the kingdom’s power structure.
His fast ascent, and his well-publicized foreign trips to Washington, Europe, the Middle East and elsewhere in Asia, have led senior Obama administration officials to consider the prospect that he could step over Prince bin Nayef and become Saudi Arabia’s next king.
This has led to a balancing act for American officials who want to build a relationship with him while not being used as leverage in any rivalry with Prince bin Nayef. Obama administration officials say relations with Prince bin Salman have generally improved, but only after a rocky start when he would routinely lecture senior Americans — even the president.
In November, during a Group of 20 summit meeting at a luxury resort on the Turkish coast, Prince bin Salman gave what American officials described as a lengthy speech about what he saw as the failure of American foreign policy in the Middle East — from the Obama administration’s restraint in Syria to its efforts to improve relations with Iran, Saudi Arabia’s bitter enemy.
Personal relationships have long been the bedrock of American-Saudi relations, yet the Obama administration has struggled to find someone to develop a rapport with the prince. The job has largely fallen to Secretary of State John Kerry, who has hosted the prince several times at his home in Georgetown. In June, the two men shared an iftar dinner, breaking the Ramadan fast. In September 2015, dinner at Mr. Kerry’s house ended with Prince bin Salman playing Beethoven on the piano for the secretary of state and the other guests.
In May, the prince invited Mr. Kerry for a meeting on the Serene, the luxury yacht he bought from the Russian billionaire.
His desire to reimagine the Saudi state is reflected in his admiration — some even call it envy — for the kingdom’s more modern and progressive neighbor in the Persian Gulf, the United Arab Emirates.
He has influential supporters in this effort, particularly the crown prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, who for more than a year has been promoting Prince bin Salman in the Middle East and in Washington.
Crown Prince bin Zayed, the United Arab Emirates’ de facto ruler, is a favorite among Obama administration officials, who view him as a reliable ally and a respected voice in the Sunni world. But he also has a history of personal antipathy toward Prince bin Nayef, adding a particular urgency to his support for the chief rival of the Saudi crown prince.
In April of last year, Mr. Obama’s national security adviser, Susan E. Rice, led a small delegation of top White House officials to visit Prince bin Zayed at his home in McLean, Va. During the meeting, according to several officials who attended, the prince urged the Americans to develop a relationship with Prince bin Salman.
But all questions about Prince bin Salman’s future are likely to depend on how long his father lives, according to diplomats who track Saudi Arabia.
If he died soon, Prince bin Nayef would become king and could dismiss his younger cousin as a gesture to his fellow royals. In fact, it was King Salman who set the precedent for such moves by dismissing the crown prince named by his predecessor.
“If the king’s health starts to deteriorate, Mohammed bin Salman is very likely to try to get Mohammed bin Nayef out of the picture,” said Mr. Riedel, the former C.I.A. analyst.
But the longer King Salman reigns, foreign officials said, the longer the young prince has to consolidate his power — or to convince Prince bin Nayef that he is worth keeping around if Prince bin Nayef becomes king.
Most Saudi watchers do not expect any struggles within the family to spill into the open, as all the royals understand how much they have to lose from such fissures becoming public or destabilizing their grip on the kingdom.
“I am persuaded as someone who focuses on this topic that the ruling family of Saudi Arabia above all else puts the interest of the family first and foremost,” said Mr. Kechichian, the analyst who knows many royals.
“Not a single member of the family will do anything to hurt the family.”
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Oil prices dip after reaching June highs following U.S. crude stock draw
A worker checks the valve of an oil pipe at an oil field owned by Russian state-owned oil producer Bashneft near the village of Nikolo-Berezovka, northwest of Ufa, Bashkortostan, January 28, 2015. REUTERS/Sergei Karpukhin/File Photo
Oil prices dipped on Thursday but remained near June highs reached the previous session when they were buoyed by a fall in U.S. crude inventories.
U.S. West Texas Intermediate (WTI) crude oil futures were trading at $49.63 per barrel at 0051 GMT, down 20 cents from their last settlement.
International Brent crude futures were down 24 cents at $51.62 per barrel.
Traders said the price dips early on Thursday were largely a result of profit-taking following strong price rises the day before.
Both contracts hit their highest levels since June on Wednesday after the U.S. Energy Information Administration (EIA) said crude stockpiles fell 3 million barrels last week to 499.74 million barrels, and as international oil markets prepared for a planned output cut by the Organization of the Petroleum Exporting Countries (OPEC).
“Another week another surprise draw down in crude inventories by the EIA … Although crude in storage remains at record highs, this is the third week of unexpected draw downs in a row,” said Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.
He added that WTI prices would likely be “eyeing the psychological $50” soon, although there was the downside risk of shale drillers putting rigs back into operation which were mothballed at lower prices.
Other analysts said that overall market conditions pointed to slightly higher prices, largely due to the planned OPEC cut, but also due to the risk of forced disruptions.
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“All in all, oil prices seem headed for higher levels in the coming period,” Global Risk Management said in its quarterly report published this week. It pointed to the risk of “several oil producing countries struggling to increase or even keep production at current levels due to unrest/oil facility wreckage and lack of industry investments”.
(Reporting by Henning Gloystein; Editing by Joseph Radford)
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