Amidst Unprecedented Stupidity, Saudi Arabia Taps the Debt Markets

People are making a big deal about Saudi Arabia tapping the debt markets for $32 billion big ones today. Before we all start feeling bad for House Saud, let’s remember that the greatest transfer of wealth has just occurred, from west to east, courtesy of the fucktards in our State Dept. who decided that the best course of action to tackle the terrorist problem was middle east regime change.

They (House Saud) were the morons who decided to attempt to break the backs of the good oil men in the Bakken Shale, by refusing–repeatedly–to cut production. It truly was a sight to behold, coming from an organization that was hell bent on higher prices…always. Then, all of a sudden, amidst a 30% drop in crude, they refused to cut production in favor of retaining market share.

Morons.

Now they have 326 million barrels of crude in reserve, the most since 2002. Economic growth has collapsed from +10% to +3%. They’re delaying payments to contractors, and are entirely fucked, in the streets, without shoes.

And this:

“It’s hard to hold back from boosting spending when oil is on the rise, but very hard to cut when oil prices fall,” Simon Williams, chief economist for central and eastern Europe, the Middle East and North Africa at HSBC Holdings Plc, said in e-mailed comments. “Cuts are coming — the budget deficit is too large to ignore and pretend it’s business as usual.”

Saudi Arabia will cut production, sometime within the next 6 months. Oil stocks will fucking surge like beasts out of hell, or bats out of a cave, then everyone will fade oil–making a mockery of the little men who walk around with circles on their heads.

There is an OPEC meeting Wednesday. No one expects them to cut production, which is why it’s such a great trade. Oil stocks are rangebound anyway. I love long oil ahead of any OPEC meeting for the next six months.

Fucking monarchy in the 21st century. Give me a break.

Top oil pick: SLCA