Major tensions in the Gulf states as Egypt, Bahrain, and Saudi Arabia have all cut ties with Qatar (expect more to follow).

This will be interesting to follow.

It is no secret that Qatar has been a haven for extremists groups while also using its state run Al Jazeera network to try to create disruptions in rival states.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

UAE just cut ties. (a new nation is added to the list almost every 5 minutes)

All of these countries have closed borders, airpsace, etc. with them and are giving Qatari citizens 2 weeks to leave.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

Deadliest catch without the Craps..we're almost outta gas..Call the A-Rabs!

As of last year, we only get 5% of our oil from the Middle East, but China, India, etc. are reliant upon them so if their supply gets cut, global demand from remaining suppliers will drive up prices for everyone.

Trump might want to reconsider that selling of the strategic reserve as we may need it.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

It's a good thing that we have a president who makes tremendous deals. He should have this fixed in no time.

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Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way

Yeah he'll make it worse somehow.

I'm not going to lie, but I'd personally like to see Qatar get what's due for their harboring of Hamas's leadership. If it comes via the end of a Saudi sword, so be it.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

Worth noting, but by closing air borders, Qatar Airways is fucked. (they kind of already were as the super-connector model is dying)

Their flights will have to take vastly different routing.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

This is the beginning of the end for the Gulf rentier states. In 20 years the cities of Dubai, Doha, Jeddah etc. will be vacant or destroyed. The United States should not, and I expect will not, get involved in the coming wars except to defend the base in Bahrain.

The Saudi's are the biggest piece at of shit in the region, This sounds like a Sheldon Adelson hit piece.

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Saudis are pieces of shit, but Qatar has been allowing electronic funds transfers to ISIS, Saudis clamped down on those years ago.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

Oh no! The 2022 World Cup!

Well hopefully they haven't killed off all of their slave labor so they can get those stadiums done for the World Cup in 22 .

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They both fund Wahhabi groups. The region is scapegoating Qatar because they realize the tide of public opinion is turning hard and direct confrontation between Islam and the West is looking increasingly possible. Throwing Qatar under the bus like this they hope will buy them some time for things to hopefully calm down.

They are going after Qatar as Al Jazeera is the state run media corp of that nation and Al Jazeera is being used by the Qatari government to undermine their regimes.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

Agreed

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There are other reasons for them to pick Qatar, which probably has the worst image in the West of all the rentier states because of their use of slaves. Qatar is not going to find any friends to help them, and compared to the military might of Saudi Arabia stand no chance in war. As a country it may cease to exist sooner rather than later.

I think they will will try to depose the Emir.

The question is will Iran step in. If Iran doesn't step in, the Emir leaves after some negotiated deal to end the crisis.

If Iran steps in, you have a possible regional war, which can spiral out of control. I don't know if Iran can step in though, they are up to their knees in Syria right now with their top units fighting there,

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

Oil prices soar then the US starts drilling domestically again and gluts up the market.

Oil prices will never go nowhere near what it did at its worst.

Besides, the Saudis traditionally make sure to keep the market from going nuts, and will likely be even more willing to do so given their recent 'purchase' of US weaponry, etc.

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Power is always in the hands of the masses of men. What oppresses the masses is their own ignorance, their own short-sighted selfishness.
- Henry George

Yeah, we need to shit on Al-Jazeera the way we do Russia Today. Only difference is Al-Jazeera has that AJ+ feed where they're like "look at how these heckin' doggos are omg epic bac--" well, I guess they wouldn't be epic bacon, now would they? But you know what I mean. AJ+ blows except one of their reporters is really hot.

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Trump already made the deal in SA last week.

US shale producers have already began drilling/fracking like the boom was back in January. Up here in the Bakken there are a bunch of drilling leases that will expire and go back to bidding at the end of the year if they aren't drilled.

The company I work for barely has enough people to keep up with all the work we have. Apparently, the fracking companies like Halliburton, Rockpile, Liberty are all back to hiring people off the street like it's 2010 again.

Basically, big oil isn't giving a shit about a glut, or OPEC this year.

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Also, all the idiot traders that bought oil at $130 in 2008, took a bath financially. Thank you Karma.

OPEC production is becoming less and less important due to the shale revolution. In 2008 oil prices peaked at $140 bbl when the U.S. was importing 12 million b/d of oil. Because of shale, that number is down to 5 million a day, and less, 2.4 million b/d, if you subtract imports from Canada and Mexico. On top of that, world growth is only expected to increase marginally in 2018, to a little above 3%, while OECD inventories are expected to remain high, that is at the top of their range at 65 days of supply.

Note that despite the huge bubble in U.S. equity prices, crude has done nothing or has gone down. Since it doesn't look like Trump will get his agenda passed of axing Obamacare and giving the top a $900 billion tax cut, equity prices are set to fall. So if crude prices have done nothing when stocks have gone up, what will happen to that disconnect when stock prices fall? Oil will get crushed.

From my vantage point, we have seen several "start-up" drillers go public and raise significant fresh capital in the last year. Now we're see the frac material providers (sand and other at well services) starting to go public with big expansion plans. As was said, OPEC is becoming less relevant in the world markets, and the U.S. is now a swing producer. It is part of the reason that WTI trades at lower prices than Brent.

The only business plans we're seeing are for domestic fracking, mainly in Colorado and West Texas (Permian Basin). It used to be all offshore or in foreign locations.

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Hawaii (fuck) You

They could charge $20 per gallon and we'd all still pay it because we're American and love our cars.

...or because most people literally have to have a car.

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You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!

Well I heard an ad this weekend against the Cook County beverage tax saying that a $0.99 two liter may double in price. Oh well, I live in Kane County and don't drink soda.

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Hawaii (fuck) You

"Why doesn't the US have public transit like Europe?"

Population and size. Germany pop :80 mil. US pop: 321 mil. 27 Germanys fit into USA

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

There was a suicide bombing in Iran's parliament today. ISIS claimed it, but Iran is accusing the Saudis of doing it.

Folks this may be Balkans July 1914 again. Let's just stay out of this one and eat the popcorn.

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“When I walked in this morning, and saw the flag was at half mast, I thought 'alright another bureaucrat ate it.'" - Ron Swanson

They'll always be undercut by North Dakota and the Gulf.