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looking beyond borders

foreign policy and global economy

Archive for the tag “OPEC”

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 Cartel That Failed

Saudis, Russia, shale. That is all ye need to know in order to understand the oil market. The Saudis lead the OPEC oil cartel, Russia is their largest potential fellow traveler, and the Permian Basin in the Southwest is the oil-rich shale that stands between the other two and $100 per barrel oil.

Read Here – The Weekly Standard

How Trump Is Already Shifting Domestic Politics In Iran

As election season approaches with the May presidential vote around the corner, there will be more discussions of this sort among Iranian political factions. Through Khatami’s call for unity in the face of Trump’s threats as well as Rouhani’s defiant speech on Feb. 10, the moderates and the Reformists are in essence pushing to the fore the benefits of a national reconciliation. However, in response, the radical conservatives have far from welcomed such an initiative. I

Read Here – Al Monitor

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

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

The Death Of OPEC

The Organization of the Petroleum Exporting Countries is dead. Saudi Arabia killed it. Now, OPEC is just a toothless zombie, attracting attention, but without having any impact on the living.

Read Here – Project Syndicate

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

MBS, The Thirtysomething Prince

Saudi Arabia, America’s oldest ally in the Middle East, is in the midst of the most profound changes in decades. The leadership is going through an unprecedented generational change and has adopted an aggressive foreign policy. The driver of change is the king’s favorite son, Deputy Crown Prince and Minister of Defense Mohammed bin Salman.

Read Here – The Daily Beast

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