Saudi Arabia: 10 Reasons the EU should Oppose the Saudi Monarchy - by Medea Benjamin

During the discussion on the Iran nuclear deal, it has been strange to hear US politicians fiercely condemn Iranian human rights abuses while remaining silent about worse abuses by US ally Saudi Arabia. Not only is the Saudi regime repressive at home and abroad, but US weapons and US support for the regime make Americans complicit. So let's look at the regime the US government counts as its close friend.

1. Saudi Arabia is governed as an absolutist monarchy by a huge clan, the Saud family, and the throne passes from one king to another.The Cabinet is appointed by the king, and its policies have to be ratified by royal decree. Political parties are forbidden and there are no national elections.

2. Criticizing the monarchy, or defending human rights, can bring down severe and cruel punishments in addition to imprisonment. Ali al-Nimr was targeted and arrested at the age of 17 for protesting government corruption, and his since been sentenced to beheading and public crucifixion. Raif Badawi was sentenced to 10 years in prison and 1,000 lashes for writing a blog the government considered critical of its rule. Waleed Abulkhair is serving a 15-year sentence for his work as a human right attorney. New legislation effectively equates criticism of the government and other peaceful activities with terrorism.

The government tightly controls the domestic press, banning journalists and editors who publish articles deemed offensive to the religious establishment or the ruling authorities. Over 400,000 websites that are considered immoral or politically sensitive are blocked. A January 2011 law requires all blogs and websites, or anyone posting news or commentary online, to have a license from the Ministry of Information or face fines and/or the closure of the website..

3. Saudi Arabia has one of the highest execution rates in the world, killing scores of people each year for a range of offenses including adultery, apostasy, drug use and sorcery. The government has conducted over 100 beheadings this year alone, often in public squares.

4. Saudi women are second-class citizens. The religious police enforce a policy of gender segregation and often harass women, using physical punishment to enforce a strict dress code. Women need the approval of a male guardian to marry, travel, enroll in a university, or obtain a passport and they're prohibited from driving. According to interpretations of Sharia law, daughters generally receive half the inheritance awarded to their brothers, and the testimony of one man is equal to that of two women.

5. There is no freedom of religious. Islam is the official religion, and all Saudis are required by law to be Muslims. The government prohibits the public practice of any religion other than Islam and restricts the religious practices of the Shiite and Sufi Muslim minority sects. Although the government recognizes the right of non-Muslims to worship in private, it does not always respect this right in practice. The building of Shiite mosques is banned.


6. The Saudis export an extremist interpretation of Islam, Wahhabism, around the globe. Over the past three decades, Saudi Arabia spent $4 billion per year on mosques, madrassas, preachers, students, and textbooks to spread Wahhabism and anti-Western sentiment. Let's not forget that 15 of the 19 fanatical hijackers who carried out the 9/11 attacks were Saudis, as well as Osama bin Laden himself.

7. The country is built and runs thanks to foreigner laborers, but the more than six million foreign workers have virtually no legal protections. Coming from poor countries, many are lured to the kingdom under false pretenses and forced to endure dangerous working and living conditions. Female migrants employed in Saudi homes as domestic workers report regular physical, sexual, and emotional abuse.

8. The Saudis are funding terrorism worldwide. A Wikileaks-revealed 2009 cable quotes then-Secretary of State Hillary Clinton saying "Donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide....More needs to be done since Saudi Arabia remains a critical financial support base for al-Qaeda, the Taliban, Lashkar e-Tayyiba and other terrorist groups." In Syria the Saudis are supporting the most extreme sectarian forces and the thousands of volunteers who rally to their call. And while the Saudi government condemns ISIS, many experts, including 9/11 Commission Report lead author Bob Graham, believe that ISIL is a product of Saudi ideals, Saudi money and Saudi organizational support.

9. The Saudis have used their massive military apparatus to invade neighboring countries and quash democratic uprisings. In 2011, the Saudi military (using US tanks) rolled into neighboring Bahrain and brutally crushed that nation's budding pro-democracy movement. In 2015, the Saudis intervened in an internal conflict in Yemen, with a horrific bombing campaign (using American-made cluster munitions and F-15 fighter jets) that has killed and injured thousands of civilias. The conflict has created a severe humanitarian crisis affecting 80 percent of the Yemeni people.

10. The Saudis backed a coup in Egypt that killed over 1,000 people and saw over 40,000 political dissidents thrown into squalid prisons. While human rights activists the world over where condemning the brutal regime of Al Sisi, the Saudi government offered $5 billion to prop up the Egyptian coup leader.

The cozy US relationship with the Saudis has to do with oil, weapons sales and joint opposition to Iran. But with extremism spreading through the globe, a reduced US need for Saudi oil, and a thawing of US relations with Iran, now is the time to start calling for the US government to sever its ties with the Saudi monarchs.

Read more: 10 Reasonsthe EU  should Oppose the Saudi Monarchy | Medea Benjami

Global Oil Production: Double Dip seems to have started as prices drop

Oil Exploration

OILPrice Intelligence reports that the double dip looks to be on. After nearly two months of moderate price gains for crude oil, by mid-March oil is swooning once again. Brent is showing a bit of resilience, but the WTI benchmark – which is the major marker for North American crude – dropped to its lowest level in six years. Producers may have thought they were nearly out of the woods, but stubborn levels of production from U.S. shale fields have prevented a rally. Even worse (for drillers) is the fact that oil storage tanks are starting to fill up. Storage at Cushing, Oklahoma is two-thirds full, and hedge funds and major investors are selling off oil contracts, betting that prices are heading south.

While the oil storage story is real – average storage levels nationwide (USA) are up to 60%, a big jump from the 48% seen a year ago – it may have been played up too much in the media. Many refineries are taken offline in the spring for maintenance, which forces drillers to pump crude into storage for several weeks. Additionally, U.S. consumers are starting to use more gasoline because of low prices, and the extra demand may soak up some of the glut. Finally, production, stubborn as it is, may soon finally begin to dip. Fresh data from North Dakota shows that may already be happening. In other words, the weekly storage build may be unsustainably high.

Nevertheless, the selloff is underway. That is providing an interesting opportunity for the U.S. government, which is set to purchase 5 million barrels for the strategic petroleum reserve (SPR). In March 2014, the U.S. government sold off 5 million barrels ostensibly for a “test sale,” but was no doubt at least in part motivated by the fact that oil prices surpassed $100 per barrel. However, by law, the U.S. Department of Energy is required to replenish that sale within 12 months. With the deadline approaching, the DOE has announced plans to buy up 5 million barrels to put back into the SPR. The U.S. taxpayer is about to benefit from extraordinary timing. With prices now half of what they were 12 months ago, the government will be able to bring the SPR back to up to its proper level at half the price.

Low oil prices are good for the government, but not so good for the oil majors. Italian oil giant Eni (NYSE: ENI) became the first of the oil multinationals to slash its dividend due to low prices and also moved to suspend its share buy-back plan. Eni announced plans to pay 0.8 euros per share rather than the 1.12 euros it paid out in 2014. The move was not taken well by investors – the company’s stock tanked by nearly 5% on the announcement. Still, CEO Claudio Descalzi put on a brave face, claiming that he was “building a more robust Eni capable of facing a period of lower oil prices.” The dividend has long been prioritized by the oil majors, needing to be protected at all costs. Many of them have opted for dramatic cuts to capital spending rather than touch their dividend policies, even if that threatens future production rates. High dividends have made major oil companies highly attractive investment vehicles, allowing companies to obtain a lower cost of capital for drilling plans. Eni has bucked the trend, arguing that it will be more resilient as a result of the dividend cut. Descalzi insists the company will “be strong” if prices remain at $60 per barrel or above. It remains to be seen how long oil prices stay depressed, and whether or not other oil majors can avoid coming to the same conclusion as Eni.

OPEC released its monthly oil market report on March 16, in which it argued that North American shale will face a contraction later this year. However, the oil cartel also saw some production declines for the month, as Libya, Iraq, and Nigeria continue to struggle with violence and low oil prices. Libya, in particular, is facing a crisis. Spain raised the prospect of a European Union embargo on Libyan oil if the country’s two political factions did not make headway on peace. Cutting off Libya’s only economic lifeline almost certainly would not bring a swift end to political impasse in Libya, but the EU is clearly becoming impatient with the ongoing violence just across the Mediterranean.

Russian President Vladimir Putin reemerged from a 10-day absence that fueled many-a-rumor – speculation ranged from a palace coup, to a secret birth of a child, even to some wondering whether the Russian President met an early demise. The Kremlin offered no explanation, but Putin appeared to be just fine. Despite his seemingly good health, the Russian economy continues to buckle under the weight of low oil prices. And that, according to Bloomberg, has Putin increasingly angry at a once close ally: Rosneft head Igor Sechin. Putin is reportedly blaming Sechin for rising debt at the state-owned oil firm, perhaps stemming from the purchase of TNK-BP in 2013. Also, Sechin’s role in borrowing billions of rubles that sent the currency plummeting in December 2014 has raised the ire of the Russian President. There are rumors that Sechin could be on his way out, but those reports are unconfirmed. Nevertheless, the fraying of the relationship suggests low oil prices are taking a toll on Putin’s inner circle.

EU-Digest