A new crude oil bloc seems to be taking shape, apparently at the cost to the U.S. and the West A new, global ‘crude’ order is coming, carrying geopolitical ramifications. On Mar. 10, a China-brokered deal between two oil-producing rivals in the Middle East, Iran and Saudi Arabia, was announced. The deal took the world…
It would be a crippling blow to the influence of the organization on the global oil markets Saudi Arabia and the United Arab Emirates (U.A.E.) are on a collision course over several issues, one of which could seriously impact the fate and the workings of the Organization of Petroleum Exporting Countries (OPEC). There were reports…
Saudi Arabia is feeling the pressure, but the prospect of a ‘crude’ divorce between Moscow and Riyadh seems premature The Saudi-Russian relationship, which has played a key role in managing crude markets in recent years, occurred despite overt pressure from Washington on Saudi Arabia and its partners within the Organization of Petroleum Exporting Countries, OPEC.…
U.S. commitment to Saudi security is waning, opening the doors to China Chinese President Xi Jinping’s visit to Riyadh last week provided a sharp contrast to the one that U.S. President Joe Biden undertook to Saudi Arabia last July. Pomp, show, warmth and a consensus of views on geopolitical issues were very visible during the…
And that will have consequences for the rest of the world
The United States and Saudi Arabia are locked in a bitter battle over oil, CNN Business reported last Friday. And it carries consequences, not only for the future of the global energy order but also for the future world order. Everything is at stake. Ever since the world began growing out of the COVID pandemic…
Washington is not as important to Riyadh as it used to be
In the mid-80s, it is said that U.S. President Ronald Reagan and King Fahd of Saudi Arabia colluded to destroy the oil markets by making it financially impossible for the then-Soviet Union to continue its Afghanistan venture. Oil markets crashed. The war on Afghanistan became untenable for Moscow. The Soviet Union disintegrated, and the world…
Ultimately – or after the U.S. mid-terms – the animosity will cool down
Oil is addictive. At least for addicts like me. While I took some time off over the last couple of weeks, the oil and energy world passed through major upheavals, with long-term geopolitical consequences. On Sept. 27, three offshore lines of the Nord Stream gas pipeline system on the bed of the Baltic Sea sustained…
Putin's War has lifted the Gulf states out of an almost decade-long economic slump
I am in Abu Dhabi and the glitter is visible – all around. With the oil-based economies of the Gulf’s current high budgetary surpluses, the glitter will only shine brighter. New projects worth hundreds of billions of dollars are being showcased throughout the region, from Saudi Arabia to Qatar and from Abu Dhabi to Kuwait.…
The prospects of a global economic slowdown are beginning to hit oil demand
The much-awaited ministerial meeting of the Organization of Petroleum Exporting Countries and its allies, including Russia, in the expanded OPEC+, opted to increase its September output by just 100,000 barrels per day (bpd). Despite the urgings of U.S. President Joe Biden to open Saudi Arabia’s crude oil taps during his visit there, the announced output…
Saudi Arabia isn’t ready to ditch Russia
After a brief lull and a price drop, crude oil markets are heating up again, surging by more than US$2 a barrel last week. The Aug. 3 expanded OPEC+ ministerial meeting, which includes Russia, is just around the corner. And signals from producing countries aren’t helping to stabilize the markets. In addition, the threat of…