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looking beyond borders

foreign policy and global economy

Archive for the tag “Oil Prices”

OPEC’s Game-Theory Dilemma

To win the price-setting game, oil producers need to address two related issues: They must maintain prices at a relatively high level without losing more market share to nontraditional producers, and they need to retain unity amid geopolitical tensions and disparities in domestic economic and financial situations.

Read Here – BloombergView

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The Promise Of Middle East Sovereign Wealth Funds

In the aftermath of the 2008 global financial crisis, investment capital became far scarcer and efforts to ensure SWF transparency and accountability gave way to competition for their capital. Far from a source of apprehension, SWFs have become beneficiaries of fiscal incentives designed to encourage investment in Europe.

Read Here – Project Syndicate

Abu Dhabi’s New $125 Billion Sovereign Fund Is Taking Shape

Can Mohamed Bin Salman Reshape Saudi Arabia?

His command of the issues was solid, his delivery even better. His body language signaled confidence, even though he was the youngest and least experienced person in the room. He had charisma. But most important of all, he made a more powerful case for his country than any Saudi official had done before.

Read Here – Foreign Affairs

Dawn Of The New Iranian Empire

That Iran has not started a war in the last 200 years has become a common refrain among those who want to downplay the threat posed by the Islamic Republic. Alas, it is a false claim, but that has not diminished enthusiasm for it.

Read Here – Commentary

In U-Turn, Saudis Choose Higher Prices Over Free Oil Markets

Saudi Arabia has ended its flirtation with free oil markets. It took the kingdom’s new oil minister, Khalid Al-Falih, just six months to blink, ending the country’s two-year policy of pump-at-will.

Read Here – Bloomberg

Iran Now Has The Edge In The Fight Over Oil Prices With Saudi Arabia

The contrast between the two countries is stark. Iran, never as dependent on oil revenue as its neighbor, has seen prospects boosted by rapprochement with the west. In Saudi Arabia, tentative moves toward economic reform haven’t prevented two years of weak prices causing financial havoc: it’s burning through foreign exchange reserves, government contractors have gone unpaid and civil servants will get no bonus this year.

Read Here – Bloomberg

Iran’s Financial Long Game To Beat The Nuclear Deal

Iran’s heavy reliance on project financing arrangements will have consequences that far outlive the initial terms of the Iranian nuclear agreement, while creating a potentially unique set of incentives for the various parties in the event Iran defaults on its commitments or resorts to old patterns at the expiration of the Joint Comprehensive Plan of Action (JCPOA).

Read Here – The National Interest

OPEC’s Output Freeze: What Has Changed Since Doha?

It’s possible that OPEC is crying wolf with hints of an output freeze next month in Algiers; but it’s also possible that they are ramping up production to take the sting out of a freeze. This is a delicate balancing act that the Saudis need to play very carefully.

Read Here – OilPrice.com

Saudi Arabia’s Bold New Oil Strategy Could Backfire

The price stabilization may have precluded a true test of the Saudis’ future strategy, though there is ultimately little reason to believe that maintenance of high supply has been abandoned; it has merely been recalibrated to make the Kingdom a price taker rather than maker.

Read Here – The National Interest

The Limits Of Oil’s Rebound

Since last August, when it became clear that the lifting of sanctions on Iran would unleash a massive increase in global oil supplies, $50 has proved to be a ceiling for the trading range of a barrel. But now that this level has been exceeded, will it again become a floor?

Read Here – Project Syndicate

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