Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom

Saudi Arabia has pulled a planned deal with Virgin Hyperloop One after Sir Richard Branson said early last week that he would temporarily cut ties with the kingdom until more details about the death of regime insider-turned-critic Jamal Khashoggi.

Which project is next? 

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This Khashoggi situation is really affecting other areas. 
However, I think Branson was a bit quick to make his decision in cutting ties with SA. All the facts aren't out yet. 

Took hyperloop many years to get where they are - SA is an important investor - yes they still have some $250 million from outside investors - but this could be a blow to the hyperloop. 

 

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2 minutes ago, CMOP said:

This Khashoggi situation is really affecting other areas. 
However, I think Branson was a bit quick to make his decision in cutting ties with SA. All the facts aren't out yet. 

Took hyperloop many years to get where they are - SA is an important investor - yes they still have some $250 million from outside investors - but this could be a blow to the hyperloop. 

 

Oh, I don't know.  A whole host of bankers, investors and even governments are pulling out of the meeting, the so called Davos of the Middle East.  After all the discussions I have read here on Oil Price, I think most of them are just using this as a convenient excuse to back away from a belligerent, failing regime.  Note the ARAMCO IPO and so many other idiotic moves in recent times that the KSA can't seem to back up or follow through on.....

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3 minutes ago, Dan Warnick said:

Oh, I don't know.  A whole host of bankers, investors and even governments are pulling out of the meeting, the so called Davos of the Middle East.  After all the discussions I have read here on Oil Price, I think most of them are just using this as a convenient excuse to back away from a belligerent, failing regime.  Note the ARAMCO IPO and so many other idiotic moves in recent times that the KSA can't seem to back up or follow through on.....

Doubt it - if the money flows, all these businessmen are happy to get financing from KSA. Next to this, they have been ignoring what the UN calls the largest man made famine for years now as @Tomasz pointed out in the other major thread. 

I'd say, a good indicator about how the international community will finally respond to this is how European leaders are behaving. We haven't seen any sanctions threats from Europe yet, and while Trump was quick to respond, he seems to be backing up the Saudi King. 

I'm not sure that shelving the Aramco IPO was a sign of weakness, but no sane investor would dump significant sums of money in that IPO anyway...

I don't expect any strong sanctions at this point, and while I'm not sure that this will be the last project that the Saudis withdraw from, I think they will be hesitant to cause global chaos in oil markets.

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3 minutes ago, TomTom said:

Doubt it - if the money flows, all these businessmen are happy to get financing from KSA. Next to this, they have been ignoring what the UN calls the largest man made famine for years now as @Tomasz pointed out in the other major thread. 

I'd say, a good indicator about how the international community will finally respond to this is how European leaders are behaving. We haven't seen any sanctions threats from Europe yet, and while Trump was quick to respond, he seems to be backing up the Saudi King. 

I'm not sure that shelving the Aramco IPO was a sign of weakness, but no sane investor would dump significant sums of money in that IPO anyway...

I don't expect any strong sanctions at this point, and while I'm not sure that this will be the last project that the Saudis withdraw from, I think they will be hesitant to cause global chaos in oil markets.

IF the money flows - I agree.  If the price of oil goes where we have every reason to believe it is going, the money won't flow.  If they don't pull a rabbit out of the hat soon, they won't be able to support themselves.  

If the people go to the meeting, they will have to listen to the endless "sales pitches" for keeping the IPO alive.  No investment banker wants to sit through something that, like you point out, nobody is going anywhere near.

There will be no sanctions. 

And finally, if the Saudis are backed into a corner, they are capable of just about anything within their power.  The realm is on the line and in the KSA that means the realm's heads are on the line.

Many a wise proposal has been given to the KSA over the years, but they always seem to resort to their own misguided, basic urges.  And then someone has to go bail them out of the mess they create.

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34 minutes ago, Dan Warnick said:

Oh, I don't know.  A whole host of bankers, investors and even governments are pulling out of the meeting, the so called Davos of the Middle East.  After all the discussions I have read here on Oil Price, I think most of them are just using this as a convenient excuse to back away from a belligerent, failing regime.  Note the ARAMCO IPO and so many other idiotic moves in recent times that the KSA can't seem to back up or follow through on.....

Remember Arab Oil Cogress in Cairo, in 1959 wher Abdullah Tariki of KSA andPerez Alfonzo of Venezuela created OPEC. Myvirk @gmail.com 

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2 minutes ago, Muhammad Virk said:

Remember Arab Oil Cogress in Cairo, in 1959 wher Abdullah Tariki of KSA andPerez Alfonzo of Venezuela created OPEC. Myvirk @gmail.com 

No, I don't.  That was 4 years before I was born.  Anyway, are you trying to tell me that back in 1959 they did something, by creating a cartel?  An entity that is illegal in the West because it is an inherently unfair practice?  Or is it something else?

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7 minutes ago, Dan Warnick said:

No, I don't.  That was 4 years before I was born.  Anyway, are you trying to tell me that back in 1959 they did something, by creating a cartel?  An entity that is illegal in the West because it is an inherently unfair practice?  Or is it something else?

Yes, but US+west & OPEC have been cooprative all along until now And still work with each.

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29 minutes ago, Muhammad Virk said:

Yes, but US+west & OPEC have been cooprative all along until now And still work with each.

The Arab oil embargo of '73 didn't seem very cooperative?

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(edited)

They will be no major reaction. In about a month world community will forget about it and everything will be back to bussiness as usual.

Like with China.

If Russia was so powerful there would be also any sanctions or antirussian bias in western media. But they dont sponsor MSM like KSA or have very strong business links with western business like China so they can be easily attacked. Its lesson for russian elite.

Edited by Tomasz
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6 hours ago, Muhammad Virk said:

Yes, but US+west & OPEC have been cooprative all along until now And still work with each.

I keep trying to figure out what your point is.  

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I hope they further isolate themselves. I believe the price of oil will be going down soon, 2019 should be the year where lots of investors will realize that peak oil demand is near.

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12 hours ago, TomTom said:

Doubt it - if the money flows, all these businessmen are happy to get financing from KSA. Next to this, they have been ignoring what the UN calls the largest man made famine for years now as @Tomasz pointed out in the other major thread. 
 

I can't help seeing a ship and, well, rats. Ship goes down, rats flee. Pardon my crude simile, we all know bankers have spotless reputations.

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16 hours ago, CMOP said:

This Khashoggi situation is really affecting other areas. 
However, I think Branson was a bit quick to make his decision in cutting ties with SA. All the facts aren't out yet. 

Took hyperloop many years to get where they are - SA is an important investor - yes they still have some $250 million from outside investors - but this could be a blow to the hyperloop. 

 

In this case, you can't straddle the fence while waiting for a confession or the details to (never) emerge. You have to go with your instinct, which is this case is pretty sharp. This is the only way to put pressure on govts to respond accordingly. 

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(edited)

5 hours ago, Seleskya said:

In this case, you can't straddle the fence while waiting for a confession or the details to (never) emerge. You have to go with your instinct, which is this case is pretty sharp. This is the only way to put pressure on govts to respond accordingly. 

Branson is correct to dump KSA.  I predict the KSA will shortly do a confessional, that indeed reporter Khashoggi died inside the Embassy.  They will likely say it was an "accident," the result of some security team doing over-zealous "interrogation" to determine if he was an Enemy of the State.  When he "accidentally" died,the security team panicked and disposed of the body.  They will probably not admit to sawing the body up into little pieces and smuggling that out in garbage bags, but that is the most likely conclusion.  My guess is the pieces were fed to the sharks somewhere. 

Then they will trot out some undesirables, sitting in the jails, and walk them up onto an execution platform, bound and gagged, and then publicly chop their heads off, or possibly just shoot them, that being the "interrogators" that killed Khashoggi.  Very convenient. Stick around and watch. 

Coming soon, to a theatre near you. 

 

Edited by Jan van Eck
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