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A decision by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers like Russia to temporarily end a price war and cut production, amounts to a time-out rather than an end to what is likely to erupt at some point in the future as a tripartite war.
More immediately, the decision averts a significant deterioration in relations between the United States and Saudi Arabia and in the kingdom’s wake, the United Arab Emirates.
Nearly 50 US Republican lawmakers warned Saudi Crown Prince Mohammed bin Salman on the eve of this week’s OPEC oil ministers’ video conference that economic and military cooperation between the United States and Saudi Arabia was at risk.
The congressmen demanded that the kingdom end a price war with Russia that collapsed oil prices as the world struggled with the coronavirus pandemic and its devastating human and economic fallout.
Read more: Saudis brought Putin to his senses: OPEC will decide to cut output
Middle East’s desire to eliminate shale industry
The UAE had joined Saudi Arabia in raising production in a move that was sparked by Russia’s initial refusal to extend production cuts agreed early this year but more fundamentally was designed to knock out competition from US shale producers that had turned the United States into the world’s largest oil producer.
In a twist of irony, Saudi Arabia, Russia and the UAE, the initial warring parties, share a desire to take out the US shale industry in an environment in which the value of their reserves is likely to diminish in the next decades as a result of shale and renewables. Add to that a Russian interest to undermine US power where it can.
The stakes for the key warring parties, particularly the Gulf states and the US, couldn’t have been higher but were raised by the collapse of the oil price as well as demand in the midst of a global economic meltdown.
For Saudi Arabia and the UAE, the stakes were their relationship with the US and significant reputational damage with a move that put at risk tens of millions of American jobs at a time when 17 million people have joined the unemployed in the United States in the past four weeks.
Read full article here:
Saudi vs US? Oil price war hurt US more than Russia
A decision by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers like Russia to temporarily end a price war and cut production, amounts to a time-out rather than an end to what is likely to erupt at some point in the future as a tripartite war.
More immediately, the decision averts a significant deterioration in relations between the United States and Saudi Arabia and in the kingdom’s wake, the United Arab Emirates.
Nearly 50 US Republican lawmakers warned Saudi Crown Prince Mohammed bin Salman on the eve of this week’s OPEC oil ministers’ video conference that economic and military cooperation between the United States and Saudi Arabia was at risk.
The congressmen demanded that the kingdom end a price war with Russia that collapsed oil prices as the world struggled with the coronavirus pandemic and its devastating human and economic fallout.
Read more: Saudis brought Putin to his senses: OPEC will decide to cut output
Middle East’s desire to eliminate shale industry
The UAE had joined Saudi Arabia in raising production in a move that was sparked by Russia’s initial refusal to extend production cuts agreed early this year but more fundamentally was designed to knock out competition from US shale producers that had turned the United States into the world’s largest oil producer.
In a twist of irony, Saudi Arabia, Russia and the UAE, the initial warring parties, share a desire to take out the US shale industry in an environment in which the value of their reserves is likely to diminish in the next decades as a result of shale and renewables. Add to that a Russian interest to undermine US power where it can.
The stakes for the key warring parties, particularly the Gulf states and the US, couldn’t have been higher but were raised by the collapse of the oil price as well as demand in the midst of a global economic meltdown.
For Saudi Arabia and the UAE, the stakes were their relationship with the US and significant reputational damage with a move that put at risk tens of millions of American jobs at a time when 17 million people have joined the unemployed in the United States in the past four weeks.
Read full article here:
Saudi vs US? Oil price war hurt US more than Russia
