White House – not in Saudi interest to destabilise global economy over 9/11 bill 

on April 19, 2016, 6:59 am

WASHINGTON (Reuters) – The White House expressed confidence on Monday that Saudi Arabia would not follow through on a reported threat to sell U.S. assets if Congress passed a bill that could hold the kingdom responsible for any role in al Qaeda’s Sept. 11, 2001 attacks.

The New York Times reported on Friday that Saudi foreign minister Adel al-Jubeir told U.S. lawmakers that the country would be forced to sell up to $750 billion in Treasury securities and other U.S. assets in response to the bill if it passed.

White House spokesman Josh Earnest said President Barack Obama did not support the legislation and would not sign it. The bill would allow the Saudi government to be sued in a U.S. court for any role in the Sept. 11 attacks.

“I’m confident that the Saudis recognise, just as much as we do, our shared interest in preserving the stability of the global financial system,” Earnest told reporters.

Obama is travelling to Saudi Arabia later this week.

Most of the 19 attackers on Sept. 11, 2001 were Saudi nationals who hijacked four planes and flew them into New York City’s World Trade Center, the Pentagon near Washington and into a field in Pennsylvania after passengers revolted. The attack was mounted by the al Qaeda militant group.

The debate over the congressional legislation has gained traction on the U.S. presidential campaign trail. Former Secretary of State Hillary Clinton, the front-runner for the Democratic nomination, has broken with the Democratic administration and said she supported the bill.

Her rival, U.S. Senator Bernie Sanders of Vermont, said he shared the Obama administration’s concern that the legislation could open up the United States to liability from other countries but said it was important to look into any potential Saudi role in the attacks.

“I think it’s important to have a full investigation and an understanding of the role, the possible role, of the Saudi government in 9/11,” he said on NBC’s “Today” programme.

The bill, which has 22 co-sponsors, passed the Senate Judiciary Committee in January, but it has not come up for a vote in the Republican-dominated Senate. Senate Majority Leader Mitch McConnell’s office said on Monday that no vote has been scheduled.

Family members of victims who were killed in the September 2001 attacks urged Obama to support the legislation and to bring up the issue on his trip.

“It is not acceptable … to succumb to the demands of a foreign government that we abandon principles of American justice while we pursue our diplomatic goals,” they wrote in a letter to Obama that was released to the media.

In September, a U.S. judge dismissed claims against Saudi Arabia by families of victims of the attacks, saying the kingdom had sovereign immunity from damage claims.

(Reporting by Jeff Mason, Timothy Gardner, Patricia Zengerle, Susan Heavey, Steve Holland, and Idrees Ali; Editing by Jonathan Oatis)

Source: White House – not in Saudi interest to destabilise global economy over 9/11 bill – The West Australian

Saudi-Iran tensions scupper deal to freeze oil output 

Saudi Arabia’s Oil Minister Ali al-Naimi arrives to a meeting between OPEC and non-OPEC oil producers, in Doha, Qatar April 17, 2016. REUTERS/Ibraheem Al Omar

By Rania El Gamal and Reem Shamseddine

DOHA (Reuters) – A deal to freeze oil output by OPEC and non-OPEC producers fell apart on Sunday after Saudi Arabia demanded that Iran join in despite calls on Riyadh to save the agreement and help prop up crude prices.

The development will revive oil industry fears that major producers are embarking again on a battle for market share, especially after Riyadh threatened to raise output steeply if no freeze deal were reached.

Iran is also pledging to ramp up production following the lifting of Western sanctions in January, making a compromise with Riyadh almost impossible as the two fight proxy wars in Yemen and Syria.

Some 18 oil nations, including non-OPEC Russia, gathered in the Qatari capital of Doha for what was expected to be the rubber-stamping of a deal – in the making since February – to stabilize output at January levels until October 2016.

But OPEC’s de facto leader Saudi Arabia told participants it wanted all members of the Organization of the Petroleum Exporting Countries to take part in the freeze, including Iran, which was absent from the talks.

Tehran had refused to stabilize production, seeking to regain market share post-sanctions.

After five hours of fierce debate about the wording of a communique – including between Saudi Arabia and Russia – delegates and ministers announced no deal had been reached.

“We concluded we all need time to consult further,” Qatar’s energy minister Mohammed al-Sada told reporters. Several OPEC sources said if Iran agreed to join the freeze at the next OPEC meeting on June 2, talks with non-OPEC producers could resume.

TOUGH SAUDI STANCE

The failure to reach a global deal could halt a recent recovery in oil prices.

“With no deal today, markets’ confidence in OPEC’s ability to achieve any sensible supply balancing act is likely to diminish and this is surely bearish for the oil markets, where prices had rallied partly on expectations of a deal,” said Natixis oil analyst Abhishek Deshpande.

In December, OPEC failed to agree on output policy for the first time in years after Iran disagreed over a production ceiling proposed by Saudi Arabia, arguing again that it wanted to boost output post-sanctions.

“Without a deal, the likelihood of markets balancing is now pushed back to mid-2017. We will see a lot of speculators getting out next week,” Deshpande said.

Brent oil (LCOc1) has risen to nearly $45 a barrel, up 60 percent from January lows, on optimism that a deal would help ease the supply glut that has seen prices sink from levels as high as $115 hit in mid-2014.

Amrita Sen of Energy Aspects said oil prices could fall below $40 on Monday in a knee-jerk reaction.

“While today’s lack of a freeze deal has no negative impact on balances – since Iran is really the only country likely to raise output substantially – it has a huge negative impact on sentiment especially as the deal had been hyped up so much,” she said.

Saudi Arabia has taken a tough stance on Iran, the only major OPEC producer to refuse to participate in the freeze.

Deputy Crown Prince Mohammed bin Salman told Bloomberg that the kingdom could quickly raise production and would restrain its output only if Iran agreed to a freeze.

Iran’s oil minister Bijan Zanganeh said on Saturday OPEC and non-OPEC should simply accept the reality of Iran’s return to the oil market: “If Iran freezes its oil production … it cannot benefit from the lifting of sanctions.”

(Reporting by Rania El Gamal and Reem Shamseddine; Additional reporting by Sam Wilkin, Katie Paul and Tom Finn; Writing by Dmitry Zhdannikov and Andrew Torchia; Editing by Dale Hudson)

Source: Saudi-Iran tensions scupper deal to freeze oil output – Yahoo Finance

Saudi Arabia could run out of cash due to low oil prices | Business News | Business and Finance News | | The Courier-Mail

WATCHING your bank account dwindle by $930 billion in five years is a scary prospect. But that’s the reality facing one of the world’s richest countries, which could run out of cash by 2020.

Source: Saudi Arabia could run out of cash due to low oil prices | Business News | Business and Finance News | | The Courier-Mail