Saudi Aramco has discontinued shipping refined oil products to the Egyptian General Petroleum Corporation, Egypt’s state oil company, as of early October, Reuters reported Monday, citing an Egyptian government official.
Egypt did not receive crucial allocations of Saudi petroleum aid this month, forcing its state buyer to intervene by rapidly increasing tenders in order to buy over $500 million in petroleum products from other sources. EGPC also plans to release tenders to purchase fuel for local consumption.
Saudi Arabia previously agreed to provide Egypt with 700,000 tons of refined oil products in a $23 billion deal signed earlier this year. The supply was to be shipped on a credit line with a 2 percent rate expected to be repaid in 15 years.
The sudden halt comes during a severe shortage in foreign currency supplies for Egypt, which in September amounted to more than $19 billion, according to Egyptian Streets. Prior to the 2011 Revolution, in which popular protests toppled long-time Egyptian President Hosni Mubarak, and subsequent political turmoil, foreign currency reserves were estimated around $36 billion.
While Egypt was the world’s 26th largest petroleum producer in 2014, according to the Energy Information Administration, it still imported over $4 billion worth of refined oil that year. In that same year, Egypt imported 6 percent of refined petroleum products from Saudi Arabia, based on a chart by the Observatory of Economic Complexity.
Saudi officials, whose own nation’s economy has been threatened by falling oil prices, did not offer a timeline or reason for the suspension. The decision follows a recent spat between the countries over policy in Syria. On Oct. 8, Egypt supported Russia in vetoeing a United Nations resolution that called for an end to military strikes on Aleppo, Syria. Saudi Arabia vehemently supports the opposition in Syria, while Russia backs Syrian President Bashar al-Assad.
Egypt defended the vote by claiming that the resolution did not offer a permanent solution to Aleppo’s humanitarian crisis. But Saudi envoy to the UN Abdullah al-Muallami publicly derided Egypt’s action, calling it “painful,” according to Al-Arabiya.
Once a staunch ally of the West, Egypt has since drifted away following two political upheavals in 2011 and 2012 along with growing concerns of domestic instability spilling over from regional developments, including an Islamic State presence in the Sinai Peninsula and neighboring Libya.
This latest action may push Egypt closer to Russia. After voting together to squash the French-drafted UN resolution, the Egyptian and Russian agricultural committies pledged to forge better relations, Ahram Online reported. While Egyptian officals have denied rumors of Russia reviving an old Soviet naval facility in the Egyptian coastal town of Sidi Barrani, the two nations are scheduled to perform a historic joint counterinsurgency military exercise later this month, RT reported.
Egypt will have to weigh this partnership against the heavy costs of losing Saudi Arabia as an economic ally. The Aramco deal saved Egypt millions of dollars a month at a time when its attempting to turn its beleaguered economy around and reduce its deficit, according to OilPrice.com. In order to attain a crucial $12 billion loan from the IMF, Egypt is already expected to devalue its currency. The loss of Saudi oil adds to the country’s economic woes.


Anonymous on Tue, 11th Oct 2016 7:45 pm
What does Egypt produce exactly that allows it to purchase all that crud, crude, from the ‘sauds’, and weapons from the amerikan empire? The only thing I see ‘Egypt’ producing are uS backed military coups and more egyptians to feed, and not much else.
Survivalist on Tue, 11th Oct 2016 8:05 pm
Here is a link to a few really good articles on Egypt.
http://crudeoilpeak.info/category/egypt
Lots of data and charts so if you’re interested in a deep dive into where Egypt is and where they’re likely going I highly recommend the above link.
Egypt is just one more in an ever increasing list of failed states.
Truth Has A Liberal Bias on Tue, 11th Oct 2016 9:53 pm
Thanks for the link on the Egypt articles. They’re good but I’m afraid those articles include too many graphs and charts. Mak will be calling it bullshit propaganda. That retard can’t read charts and graphs. I don’t think Mak even knows grade 9 math.
GregT on Tue, 11th Oct 2016 10:03 pm
THALB,
What does Makati have to do with articles on Egypt? That’s a rather strange stream of ‘logic’ there dude.
makati1 on Tue, 11th Oct 2016 10:09 pm
GregT. anyone who challenges the mindset of a denier is always called something a 3rd grader on the playground might use. Doesn’t bother me.
Ignorance is rampant in Western countries. I got a real education in the 50s but most here got babysat in later years, not taught. Too bad. Their pain is just beginning.
makati1 on Tue, 11th Oct 2016 10:59 pm
More important news:
” “US State Department spokesman John Kirby has made strong statements regarding Russia’s involvement in Syria, claiming that if Russia will not cooperate with the US, Moscow will keep sending troops home in body bags.”
Strong words, and quite bellicose originating with a State Department spokesman completely removed from harm’s way. Then this came out today, the date of this writing on October 5th as reported by Alex Jones’ Prison Planet:
“I want to be clear to those who wish to do us harm…. the United States military – despite all of our challenges, despite our [operational] tempo, despite everything we have been doing – we will stop you and we will beat you harder than you have ever been beaten before. Make no mistake about that.”
General Mark Milley, U.S. Army Chief of Staff
Milley was directing these words toward Russia. He went on to describe the next coming war, as such:
“[The next war will] be highly lethal, unlike anything our Army has experienced at least since World War II,” and would involve fighting in “highly populated urban areas.”
Did the General mean overseas, or in the United States? The Russians are currently (until the 7th of October) conducting nuclear evacuation drills involving over 40 million people. Everyone from Putin and his general staff to local Moscow reporters believe that a nuclear war started by the United States is just on the horizon.”
http://www.zerohedge.com/news/2016-10-11/nuclear-war-horizon-not-just-talk-action-has-been-taken
Or:
“Russian Government Officials Told To Immediately Bring Back Children Studying Abroad”
“US And Russia Going To War? Gorbachev Warns ‘Dangerous Point’ Reached Over Syria Talks”
“Russia Reads US Bluster as Sign of War”
“Russia’s Lavrov: ‘Aggressive’ U.S. Actions Threaten Our National Security”
And on and on…
GregT on Tue, 11th Oct 2016 11:14 pm
At the time of this writing; 27 days, 3 hours, 48 minutes, and 11 seconds left, until the biggest decision US Americans will ever make in their entire lives.
Choose wisely America. Last chance.
Truth Has A Liberal Bias on Tue, 11th Oct 2016 11:25 pm
I’m not a denier. I just happen to think Mak is a fucking retard. To Mak anyone who thinks he’s a retard must also be a denier. He’s a fucking moron. If you follow Maks comments you’ll notice he has a strong dislike for any article that conveys data through charts and graphs. That’s because he can’t read charts and graphs. To Mak charts and graphs are tools of the deniers. I’m a hard-crash peak oil Doomer. I just also happen to notice Mak is a fucking imbecile. I’m not a denier, Mak just thinks I am cuz I know he’s an idiot.
GregT on Tue, 11th Oct 2016 11:36 pm
Let it all out THALB, don’t hold back. Tell everyone in the world how you really feel about makati1. (Even though you’ve never met him, and in all likelihood, don’t know jack shit about him)
makati1 on Tue, 11th Oct 2016 11:58 pm
GregT, Ignore those with IQs bordering on retarded. I do. They give themselves away by their use of slang, gutter mouth, and grade school name calling.
And you are correct. The decision Americans make next month will determine the speed of decent of America. Trump will try to slow it down. Hillary will push on the accelerator. Both will eventually fail as it slips into the 3rd world and/or a war that will bring destruction to American cities this time. I hope I am wrong, but all signs point in that direction.
Theedrich on Wed, 12th Oct 2016 2:27 am
I don’t agree with Mak on much, but in contrast with THALB, his posts are far more intelligible and substantive. THALB needs to return to third grade and learn a little more vocabulary than the word “retard.” Never mind actually understanding what the discussions here are all about. She apparently gets all of her drivel from the Jewbox.
Dredd on Wed, 12th Oct 2016 4:34 am
As goes Oklahoma, so goes Egypt (Oklahoma Gov. Mary Fallin Declares ‘Oilfield Prayer Day’ To Ask God To Protect The State’s Oil Industry).
brough on Wed, 12th Oct 2016 5:10 am
Survivalist, many thanks for graphs, have spent coffee break studying them.
Peace in Egypt is important to global stability and the Saudis feel they can no longer economically support them and its time someone else picked up the tab. I’m sure Egypt was a hot topic of conversation during last weeks OPEC meeting and also fringe meetings with the Russians. The big question is, are the USA going to find a way of suppling Eygpt with cheap oil on good credit terms to prevent the Russians getting a strategic toe in the door.
rockman on Wed, 12th Oct 2016 8:41 am
And thus a potential game of “chicken” between Egypt and Persian Gulf producers may be on the horizon:
Egypt plays a vital role in international energy markets through the operation of the Suez Canal and Suez-Mediterranean (Sumed) Pipeline. In 2012, about 7% of all seaborne traded oil and 13% of LNG traded worldwide transited through the Suez Canal. Egypt’s 2011 revolution and the unrest that has followed have not had any noticeable effect on oil and LNG transit flows through the Suez Canal or Sumed Pipeline.
The Suez Canal is an important transit route for oil and LNG shipments traveling northbound from the Persian Gulf to Europe and North America and southbound from North Africa and countries along the Mediterranean Sea to Asia. Changes to total oil and LNG flows through the Suez Canal in 2012 mainly occurred because of events outside of Egypt, particularly the restart of Libyan oil production and changing dynamics in LNG markets. Further, the Sumed Pipeline is the only alternative route nearby to transport crude oil northbound if loaded tankers are too large or ride too low in the water to navigate through the Suez Canal.
In 2012, southbound oil flows reached a record high as Libyan oil shipments through the Suez Canal quadrupled in 2012 compared with the previous year, reflecting the ramp-up of Libyan oil production after its civil war. In 2012, about 2.97 million barrels per day (bbl/d) of total oil (crude oil and refined products) transited the Suez Canal in both directions. This is the highest amount ever shipped through the Suez Canal, and made up about 7% of total seaborne traded oil. Crude oil flows through Sumed decreased in 2012 to 1.54 million bbl/d, as more crude oil was shipped through the Suez Canal via tankers.
Total Suez LNG flows as a percentage of total LNG traded worldwide fell to 13%, or 1.5 trillion cubic feet, in 2012, compared with 18% in 2011 for two main reasons. First, northbound LNG flows through the Suez Canal fell by nearly one-third in 2012 largely because of decreased LNG exports from Qatar to the United States and Europe. Second, northbound flows also fell because of reduced LNG exports from Yemen as a result of sabotage attacks on a gas pipeline.
Supply chain: Although external factors have to this point played a larger role in altering hydrocarbon flows through Egypt’s transit points, unrest in Egypt still presents a risk, and the Egyptian army continues to guard the Suez Canal. Closure of the Suez Canal and the Sumed Pipeline would necessitate diverting oil tankers around the southern tip of Africa, the Cape of Good Hope. That would add 2,700 miles to ship oil from Saudi Arabia to the United States, increasing both costs and shipping time, according to the U.S. Department of Transportation. Moreover, shipping around Africa would add 15 days of transit to Europe and 8-10 days to the United States, according to the International Energy Agency.
Ghung on Wed, 12th Oct 2016 9:05 am
Rock: How about sources for your cut-and-pasted posts? Would hate to see you accused of plagiarism.
Dredd on Wed, 12th Oct 2016 9:34 am
The oil god (Oilah Akbar) needs for you to prey (Ice Sheet Hemorrhagic Fever and The Prayer Wars).
brough on Wed, 12th Oct 2016 9:38 am
Rockman, again many thanks for the stats. Any chance you might have figures on the state of the global fleet of crude and LNG ships. And if there is suffcient to meet the extra lead- time that would be required if we were to loose the Suez Canal
rockman on Wed, 12th Oct 2016 11:04 am
Ghung – Here you go. If I don’t give a link it’s almost certain to be EIA. Not that they are perfect but impossible to find any other source that covers almost everything:
http://www.eia.gov/todayinenergy/detail.php?id=12371
rockman on Wed, 12th Oct 2016 11:09 am
brough – A variety of sources but this one seems rather comprehensive and current. Lots of differernt details:
https://clarksonsresearch.wordpress.com
george on Wed, 12th Oct 2016 4:26 pm
larry of arabia must be turning in his grave
DerHundistlos on Thu, 13th Oct 2016 12:07 am
“What does Egypt produce exactly.”
Egypt’s #1 growth is population. The population has ballooned from 25 million in 1962 to almost 100 million today, and a growth rate of more than 2%. The population is expected to reach 200 million by 2050. As population grows, the amount of land needed for housing and businesses rises, and the amount of land for agriculture falls. So Egypt can produce less of its own food, as time goes on. Egypt is the largest importer of wheat, and must import 45% of its food.
Truth Has A Liberal Bias on Thu, 13th Oct 2016 12:39 am
Theedrich, you’re a ducking retard. A racist retard I gather by the common theme of your comments on here. GregT, you’re a fucking retard too. In fact there are only a small handful of regular commenters on this site who aren’t total fucking retards. It’s easy to see that most of you dumbasses didn’t get much past grade 10. Just a bunch of retards circle jerking in a doom loop with no understanding of what it means. You’re all a bunch of uneducated losers who embrace collapse because it gives you feelings of satisfaction to wish suffering upon a society that doesn’t value you. You all wish for collapse and doom but fail to recognize that it’s losers like you who’ll be the first to starve.
makati1 on Thu, 13th Oct 2016 1:43 am
Truth is showing his ignorance and low I.Q. again!
Cloggie on Thu, 13th Oct 2016 3:52 am
“Truth” represents a liberal, a phase-out model from centuries gone by of constant economic growth and whitey running things.
In the 21st century of overpopulation, for whitey it is either hard green-right or go under. Invest in solar panels, food production skills, freezer, guns and tribal community building or else:
https://www.youtube.com/watch?v=R7yYARGFKbM
https://www.youtube.com/watch?v=nh1nJxal2SI
That is what happens to white “Truth” types, shouting “racism” too often:
America as a whole has zero social cohesion, unlike more homogeneous countries like Russia, China and European countries. That’s why the US is going to lose WW3. It won’t be able to mobilize itself against the rest of the world as a united coherent fighting force.
Communism doesn’t work.
Economic communism didn’t work in the USSR.
Racial communism (egalitarianism) will not work in the USA.
Cloggie on Thu, 13th Oct 2016 5:41 am
The entire German “elite” booed at last week:
https://www.youtube.com/watch?v=U5qjXLps_wA
Germany isn’t very far from a 1989 of its own.
Meanwhile in France: on the edge of civil war:
http://www.dailymail.co.uk/news/article-3685561/France-verge-civil-war-sparked-mass-sexual-assault-women-migrants-intelligence-chief-warns.html
Hollande has the lowest approval ratings of any French president in history.
http://www.euronews.com/2016/05/17/francois-hollande-scores-lowest-poll-for-a-french-president
And the reason is the same: the population begins to understand that the “elite” has decided, under influence of the Soros crowd, that the European peoples need to be abolished world wide via mass migration.
Never in European history were the conditions “better” for a complete massacre that will dwarf anything we have seen in the past:
https://en.wikipedia.org/wiki/St._Bartholomew%27s_Day_massacre
https://en.wikipedia.org/wiki/French_Revolution
The St. Bartholomew’s Day massacre was a battle between Catholics and Protestants.
The French revolution was a commie revolution where aristocrats where replaced by the bourgeoisie.
What is at stake now is the intended phasing out of European people world wide, organized by those who own the US empire.
Expect a response in measure.
And the trigger will be the very moment when the US will be at war with China, after the US attacked Russia in Syria first. Europeans will refuse to be send in a war Against Russia and China on behalf of a few US oligarchs who wants us dead anyway, leave the West and turn to Eurasia. That will be the moment the US elite will be trapped in WW3.
Once the American population realize that they are facing against a superior force in the global arena, they will drop their exceptionalist attitude and attempt to secede. They have the weapons to begin an uprising. Once the insurrection will be a fact, Russians and Europeans can attempt to invade US soil and fight on the side of the nationalists (“constitutionalists”) and hopefully keep the Chinese out of North-America.
The USSR simply fizzled out in 1991.
The US empire will only go down with a massive blow (WW3).
People in Europe and Trump supporters in the US should embrace this coming war, a war for naked survival, as a way out and create a new post-Christian civilization, no longer under the whip of the Soros types.
http://www.directupload.net/file/d/4486/8rrlwfhb_jpg
Revi on Thu, 13th Oct 2016 9:53 am
Meanwhile we are now on the Saudi side in the Yemen conflict. Egypt is the cultural heart of the Arabic world. It’s going to get interesting…
Cloggie on Thu, 13th Oct 2016 12:42 pm
“Isolated Russia latest”:
On Oct. 8, Egypt supported Russia in vetoeing a United Nations resolution that called for an end to military strikes on Aleppo, Syria. Saudi Arabia vehemently supports the opposition in Syria, while Russia backs Syrian President Bashar al-Assad.
The Egyptians narrowly defeated fundamentalist Muslims-with-an-attitude at home, so they are on the same page as Assad.
This latest action may push Egypt closer to Russia. After voting together to squash the French-drafted UN resolution, the Egyptian and Russian agricultural committies pledged to forge better relations, Ahram Online reported. While Egyptian officals have denied rumors of Russia reviving an old Soviet naval facility in the Egyptian coastal town of Sidi Barrani, the two nations are scheduled to perform a historic joint counterinsurgency military exercise later this month, RT reported.
The only interesting thing about Egypt is the Suez Canal, geopolitical speaking. It is unlikely that Russia will deliver free oil to Egypt. But it is nice to have a backup harbor for the Russian fleet, in case Syria would fall to the “moderates”, in case Washington would go all out and bomb Assad back to the stone age.
rockman on Thu, 13th Oct 2016 4:15 pm
Cloggie – And let’s not forget the supplement/alterative to the Canal…the SuMed Pipeline with a capacity of 900 MILLION BBLS OF OIL PER YEAR:
TEHRAN, Apr – Unlike Saudi Arabia, Egypt has let Iranian tankers resume oil shipments through SuMed pipeline to supply customers in Europe and the Mediterranean Sea region.
The Egyptian administration has issued the permit for Iran’s giant oil tankers to use the pipeline they operate en route to Europe. Given the permit, Saudi Arabia’s efforts and plans to set restrictions on Iran’s crude exports to Europe will fail as Iranian tankers are now able to exploit the SuMed pipeline to transfer some of their oil, thus lightening their loads for passage through the canal.
Accordingly, Iranian oil tankers exporting crude to European countries via Suez Canal have been allowed to take advantage of Egypt’s SuMed pipeline since April 02. In the current circumstances, Iran exports a daily average of 500 thousand barrels of crude oil to European markets while the new permit would allow Iranian tankers to conduct oil shipments which had been halted since August 2012.
Egyptian General Petroleum Corp. owns 50 percent of SuMed, which connects the Red Sea with the Mediterranean. State-run Saudi Arabian Oil Co., known as Aramco, owns 15 percent of the link; International Petroleum Investment Co. of the United Arab Emirates, 15 percent; three Kuwaiti companies, 15 percent; and Qatar Petroleum, 5 percent, according to SuMed’s official website.
Kenz300 on Fri, 14th Oct 2016 2:37 pm
Seems like the DESERT might be a good place to use SOLAR panels.
The Middle East could power the world with Solar Energy.
Cheap Solar Power in Texas May Depress Peak Electricity Prices
http://www.renewableenergyworld.com/articles/2016/10/cheap-solar-power-in-texas-may-depress-peak-electricity-prices.html
Solar Cost Hits World’s New Low, Half the Price of Coal
http://www.ecowatch.com/solar-price-chile-1982242311.html
peakyeast on Sat, 15th Oct 2016 6:18 pm
Kenz: Siemens aired that idea some years ago: Collecting and distributing NA sunshine to electrical users in Europe. It fell apart for reasons unknown to me.
OTOH: I would be genuinely surprised if such a thing was built and lasted more than a few months.