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Archive for the tag “Saudi Arabia”

Saudi Gravy Train Derailed By Low Oil Prices

The era of Saudi Crown Prince Mohammad bin Salman, launched with the promise of largesse, is now likely to go down in history as a period of unprecedented belt-tightening. The 34-year-old known as MBS, already set on reducing his kingdom’s dependence on oil, has now found the insurance offered by the precious commodity pulled out from under his feet.

Read Here – Asia Times

Why Gulf States Are Backtracking On India

The Modi government’s active diplomatic outreach to the Gulf states and the increasing acknowledgment of India’s growing economic opportunities had, until recently, shielded India from official criticism over the discriminatory nature of India’s new citizenship law, as well as mounting reports of anti-Muslim violence following Modi’s reelection in May 2019.

Read Here – Foreign Policy

Global Military Expenditure Sees Largest Annual Increase In A Decade, Reaching $1917 Billion In 2019

Total global military expenditure rose to $1917 billion in 2019, according to new data from the Stockholm International Peace Research Institute (SIPRI). The total for 2019 represents an increase of 3.6 per cent from 2018 and the largest annual growth in spending since 2010. The five largest spenders in 2019, which accounted for 62 per cent of expenditure, were the United States, China, India, Russia and Saudi Arabia. This is the first time that two Asian states have featured among the top three military spenders.

Read Here – SIPRI

How The Bottom Fell Out Of The U.S.-Saudi Alliance

By unsheathing the oil weapon, the Saudis have finally tested the patience of oil-patch Republicans, who have long been among their staunchest supporters in Congress. Even though the United States, Saudi Arabia, Russia, and other big oil producers reached a deal this month meant to curtail oil output and undo some of the damage, it hasn’t worked: U.S. crude oil prices are at their lowest levels of the 21st century, threatening mass bankruptcies and layoffs in the United States.

Read Here – Foreign Policy

Oil Crisis Tests Putin’s Skill To Project Strength

The global economic consequences of COVID-19 would inevitably slow Russian economic growth. A prolonged collapse in oil prices would almost certainly push the economy into recession. Putin’s promises evaporated. In these circumstances, Putin needs to raise and stabilize oil prices. The question was how to do that without appearing to yield to Saudi or American pressure.

Read Here – Yale Global

The Coronavirus Threatens Saudi Arabia’s Global Ambitions

Despite the obvious public health benefits of suspending the umrah and hajj, Saudi Arabia will pay a heavy cost for its prudence. Pilgrims bring in billions of dollars to the country every year, so the Saudi economy will suffer as long as the crisis lasts. Another loss is less quantifiable, but just as significant: pilgrimage remains one of the kingdom’s most important soft-power instruments after two decades during which its public image has deteriorated.

Read Here – Foreign Affairs

OPEC+ Deal Won’t Save Covid-19 Crashed Oil Prices

Global oil markets received the price war truce they had long sought, but hopes for a significant and sustained rebound in prices are still likely misplaced.  OPEC+, the group of oil producers led by Russia and Saudi Arabia, respectively the world’s second and third largest crude producers and top two exporters, reached a tentative agreement to trim oil production by 10 million barrels per day (bpd) to help ease the economic impact of the coronavirus crisis on global demand.

Read Here – Asia Times

Emerging-Market Petrostates Are About To Melt Down

The first hints that extremely low oil prices could plunge many petro-states into crisis came at the beginning of March, when the price of Ecuador’s sovereign bonds fell to record lows. Oil accounts for about a third of Ecuador’s export earnings and a similar portion of its public-sector revenue.

Read Here – Foreign Affairs

Russians Grapple With Oil Price War At A Time Of Pandemic

The timing could not have been worse for Russia to provoke a spat with Saudi Arabia over oil production quotas in early March. Moscow’s decision to withdraw from the OPEC+ agreement restricting oil production in order to maintain higher oil prices triggered a harsh reaction by Riyadh that sent oil prices spiralling down to below $25 per barrel in the midst of the coronavirus pandemic.

Read Here – Eurasia Daily Monitor

$10/Barrel Oil Is Possible: Can American Energy Independence Survive The 2020 Oil War?

President Trump has suggested America still has “a lot of power over the situation” and could yet find a middle ground. The U.S. leader will need all his famed dealmaking ability and more though to pull off what could be a deal of the century with Saudi Arabia, to keep U.S. energy independence and the shale industry alive.

Read Here – The National Interest

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