Saudi Arabia, Oil and Geopolitics
Saudi Oil Minister Introduction: The Fall in Oil Prices in 2015 Crude oil prices temporarily rose because Saudi Arabia signaled that it would cooperate with OPEC and non-OPEC producers to “stabilize” oil prices. Nothing specific was mentioned. At the current price and for political reasons, it is unlikely Saudi Arabia and its Persian Gulf allies will cut production or negotiate joint production cuts with other large producers. The comments are probably an indication that Saudi Arabia might be part of a global reduction in crude oil production if prices go much lower and the political situation in Syria changes. Until recently, Saudi Arabia was seeing the results it wanted. Some are economic, having to do with the current and future price and production of oil. The economic targets were shale production in the U.S and tar sands production in Canada. The geopolitical targets were Iran and Russia. But unexpected economic and...