Biden plans to break with his own precedent as he moves closer to buying oil from Saudi Arabia
President Biden is expected to extend an olive branch to Saudi Crown Prince Mohammed bin Salman after promising to make him a "pariah" and working to isolate the Saudi regime for months.
On Monday, the White House confirmed that Biden is planning to visit the oil-rich nation this summer, marking the culmination of an 18-month standoff between Biden and the crown prince. Biden is trying to wind up back in the crown prince's good graces as gas prices soar amid the ongoing Russian invasion of Ukraine.
Insider News reported that attempts by U.S. officials to convince the Saudis to increase their oil production have thus far been unsuccessful. Reportedly, the crown prince has repeatedly ignored phone calls from Biden when the president has sought to discuss issues of oil availability.
Displaying how vulnerable and dependent the U.S. is on foreign oil, Biden recently directly asked the crown prince to increase Saudi Arabia's oil output.
The Biden administration has previously made an active attempt at keeping the Kingdom of Saudi Arabia at arm's length as the president refused to meet with the crown prince for months. The Biden administration may have even issued a personal offense to the crown prince when it said that Biden should deal directly with the crown prince's father.
The U.S. also has a history of sanctioning Saudi officials. Following the circulation of a declassified intelligence report regarding the 2018 murder of journalist Jamal Khashoggi. The Central Intelligence Agency concluded that Khashoggi's murder was likely ordered by the crown prince.
Biden's visit to Saudi Arabia signals that it is no longer tenable for the Biden administration to adamantly oppose nations that could help alleviate domestic policy woes.
Adam Ereli, a former U.S. ambassador to Bahrain, said, "Do you hold a relationship hostage to human-rights concerns or you can move forward while not abandoning your moral high ground? In his mind, Biden can move forward."
Despite receiving heavy scrutiny from lawmakers and domestic activists, Biden and the White House insist that any meeting between Biden and the crown prince would serve the immediate interests of the U.S.
Last Friday, Biden said, "Look, I'm not going to change my view on human rights. But as president of the United States, my job is to bring peace if I can."
Saudi oil giant Aramco reported record first-quarter profits as oil prices soar around the globe
The Saudi Arabian oil giant Aramco reported more than an 80% jump in net profit on Sunday setting a new quarterly earnings record for the company.
The oil producing behemoth said that its net income rose 82% to $39.5 billion in the first three months of 2022. CNBC reported that this is up from $21.7 billion over the same period in 2021.
The company’s income to date obliterates forecasts by economic experts, as well. Analysts polled by Reuters forecast Aramco’s income to be $38.5 billion.
The record quarter income for Aramco comes as companies throughout the oil industry are experiencing windfall profits from sharp rises in oil and gas prices. Aramco said that its earnings were largely driven by higher crude oil prices which in turn caused increasing volumes of product to be sold as downstream margins improved.
In the Sunday earnings release, Aramco President and CEO Amin Nasser said, “During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives. Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable and increasingly sustainable.”
Now with a market cap around $2.43 trillion, Aramco has surpassed Apple to become the world’s most valuable company in the world.
Aramco’s stock is up more than 15% so far in 2022 amid widespread market selloffs. In March, the oil giant reported that its full-year profits from 2021 more than doubled due to the ongoing rise in global oil prices that has now been greatly exasperated by Russia’s invasion of Ukraine.
As member states in the European Union and the United States look for alternatives to Russian oil Aramco has the opportunity to corner the Western oil market.
In early May, the European Union planned on moving forward with issuing additional sanctions against Russia. In order for the European Union to implement sanctions, all of its 27 member states must agree to enforce them in their respective nations.
An embargo of Russian oil by the European Union would dramatically increase tensions between the European Union’s member states and Russia as the member nations would subsequently isolate the nation from which they import almost two-thirds of their oil.
Ultimately, the European Union member states failed to reach a unanimous consensus on banning the import of Russian oil. Hungary was the sole dissenter.
Saudi Arabia weighs accepting yuan instead of dollars in oil sales with China
The U.S. dollar may be on its way out as the global reserve currency.
Saudi Arabia is actively engaging in negotiations with Chinese officials to price oil sales to China in yuan instead of the U.S. dollar, the Wall Street Journal reported.
If the two countries decide to conduct business using the Chinese yuan instead of the U.S. dollar, this could mean trouble for America’s dominance as the global economic hegemon.
Reportedly, the Saudi talks with China have been off and on for six years but have recently begun to accelerate as Saudi leadership grows increasingly discontented with American security commitments to defend the country.
The Saudis are unhappy with the lack of American support for their intervention in the ongoing Yemen civil war and over the Biden administration’s renewed attempts to strike a deal with Iran over its nuclear program.
Saudi officials are also reportedly uncomfortable with the Biden administration’s ham-fisted withdrawal from Afghanistan last year.
China currently buys more than 25% of the oil exported from Saudi Arabia. Should these transactions be conducted in yuan instead of dollars, those sales would boost the standing of China’s currency and diminish the standing of the dollar.
Around 80% of global oil sales are transacted in dollars. Saudi Arabia exports roughly 6.2 million barrels of crude oil a day. If the Saudis price even a fraction of this in something other than the dollar, it would mark a profound shift in the global economy’s pecking order.
Since 1974, the Saudis have traded oil exclusively in dollars after making a deal with the Nixon administration that promised security guarantees for the kingdom.
In 2018, the Chinese government introduced oil contracts priced in yuan as it worked to make its currency more tradeable across the globe. To China’s chagrin, this did not increase its leverage in the oil market. And as the Chinese government seeks to reduce its — and by extension the globe’s — dependence on the dollar, it has worked overtime to court Saudi leadership.
In recent years, China has helped the Saudi kingdom domestically manufacture ballistic missiles, provided guidance on the Saudi nuclear initiative, and poured money into Saudi Crown Prince Mohammed bin Salman’s pet projects.
Whereas China’s relationship with Saudi Arabia appears to be improving, America’s relationship with the Saudi government is rapidly deteriorating. Prince Mohammed refused to sit in on a call between President Biden and Saudi ruler King Salman in February after U.S. intelligence officials suggested that the prince ordered the killing of a journalist.
A Saudi official said, “The dynamics have dramatically changed. The U.S. relationship with the Saudis has changed, China is the world’s biggest crude importer and they are offering many lucrative incentives to the kingdom.”
He added, “China has been offering everything you could possibly imagine to the kingdom.”
Saudi Arabia hosts real-life 'Squid Game Experience' for tourists
In Riyadh, the capital city of the Kingdom of Saudi Arabia, people can now participate in the Squid Game Experience.
The Squid Game Experience is an immersive in person simulation of the popular Netflix series of the same name. The Saudi General Authority for Entertainment (GEA) organized this event so that attendees may experience six different games inspired by the series.
“Squid Game” is a Netflix original series set in the criminal underworld of South Korea. Men and women who are down on their luck agree to participate in a series of increasingly elaborate children’s games where if they lose the game they also lose their lives.
Beating out pandemic era favorites like “Tiger King” and “Bridgerton,” “Squid Game” is currently the most watched show in Netflix’s history with more than 100 million subscriber households watching the series in its first month, according to Forbes.
The experience is roughly identical to the events of the show with participants meeting enforcers clad in masks and red jumpsuits, participating in childhood games that test their skill and agility, and ends with the announcement of a winner.
The GEA provided a special location with an area of 9,582 square meters in Riyadh for the event to be housed. In just over a month, this space was filled with different zones for each one of the games available for the public to participate in.
That said, individuals participating in the Squid Game Experience need not worry about losing their lives should they misstep or lose a game.
There are no automated guns slaughtering people who lose at Red Light Green Light and if a team loses at Tug-of-War its members won’t plummet to their deaths.
Organizers of the Squid Game Experience were sure to prioritize the safety of each participant.
Most of the time, the event is sold out as it frequently attracts hundreds of Saudi residents and tourists each day.
“Squid Game” is extremely popular in Saudi Arabia. Restaurants in the capital city of Riyadh have even incorporated the show into the dining experience as family’s bring their children to revel in the novelty of being shot with a toy gun over dessert.
The Squid Game Experience runs until the end of March 2022 and participants must be at least 18-years-old.
Saudi Arabia has experienced immense growth in tourism in recent years. In 2021 there was $19.85 billion spent by tourists in Saudi Arabia. This is more than double the $9.32 billion spent in 2011. The capital city of Riyadh is now a hub for the international entertainment and food industries as more and more people seek luxury in Saudi Arabia.
Tweet about apprehension of 'potential terrorist' who illegally entered the country deleted from Border Patrol official's account because it violated agency protocols, CBP says
A tweet posted earlier this month mentioning the apprehension of a "potential terrorist" who had unlawfully traveled into America from Mexico has been deleted from the account of Yuma Sector Chief Patrol Agent Chris T. Clem.
"The 21-year-old migrant from Saudi Arabia is linked to several Yemeni subjects of interest," part of the tweet said, according to Fox News.
The outlet reported that U.S. Customs and Border Protection public affairs assistant commissioner Luis Miranda noted via a statement that the post was deleted because "it contained law enforcement sensitive information, violating agency protocols."
"All individuals encountered at or between U.S. ports of entry are screened and vetted against a broad range of law enforcement and intelligence information to determine if they pose a threat to national security or public safety, consistent with the law," the statement noted. "CBP is continuing to investigate the matter following its standard protocols. This may include referral, if appropriate, to other relevant law enforcement entities for further investigation and a custody determination."
NEW: A tweet posted last week by Border Patrol\u2019s Yuma sector chief about a potential terrorist arrested at the AZ border has been deleted. CBP says it contained \u201csensitive info\u201d and \u201cviolated protocols\u201d. The man was in an EMS jacket belonging to an organization in upstate NY.pic.twitter.com/yNsDDF1RrX— Bill Melugin (@Bill Melugin) 1640711731
The Saudi Embassy issued a statement saying that the person is not a Saudi citizen.
"Based on the engagement with the relevant U.S authorities on this matter, the Embassy confirms that the individual mentioned here is not a Saudi citizen," the statement said.
The U.S. continues to have a significant problem along its southern border: Month after month, CBP has been recording large numbers of southwest land border encounters. The November figure was 173,620.
Based on the engagement with the relevant U.S authorities on this matter, the Embassy confirms that the individual mentioned here is not a Saudi citizen. We will continue to coordinate with the US govt and bring forward any facts on this matter. https://twitter.com/USBPChiefYUM/status/1472943237027356673\u00a0\u2026— Saudi Embassy (@Saudi Embassy) 1640049722
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