Saudi Arabia
Putin’s power play: Russia-Saudi oil deal a launchpad for bigger Russian influence in Mideast
Saudi Arabia’s oil production agreement with Russia was opportunistic at first, but it is now the foundation for a broader relationship. The full article, linked below goes into greater detail. The quote of the entire article is: “Right now Russia and Saudi Arabia’s relationship is becoming thicker than oil,” Croft said. As for the Saudis, “I think they see themselves as trying to show the Russians they have a better friend in the Middle East (than Iran).” Here’s a quick summary: The agreement between Saudi Arabia and Russia to cut back on oil production has boosted oil prices and is now the foundation for a broader relationship. The partnership with OPEC, led by Saudi Arabia, allows Russia to strengthen its hand in the Middle East at the same time the U.S. role has been diminished. S...
Saudi Arabia Eyes Higher Oil Prices – U.S. Shale Will Play A Role
OPEC has been on a five year mission to reduce the oil glut sloshed on the global supply by the U.S. Shale production. This mission is finally in reach, Saudi Arabia wants cuts to go further to cause a small supply shortage. The underlying result would be increase oil prices. Previously content with oil at $60 a barrel, Al-Falih is now seeing $70 as the level where crude prices should trade, according to a person familiar with the matter, who asked not to be identified to Bloomberg because the information was private. With the cost of social programs and the pending IPO of Saudi Aramco, a higher oil price would be very beneficial. However, if it’s at the cost of additional market share to the U.S. Shale industry, one questions if additional cuts will have the desired results on price. “If ...