homeland The British newspaper, The Telegraph, said that the Saudi regime, led by the de facto ruler of the Kingdom, Mohammed bin Salman, has become more like Putin’s puppet than a Western partner, and that the Kingdom and OPEC have become obedient servants. in Russia.
And the paper noted in an article by British economic analyst Jeremy Warner that most Western economies, even Germany, which is one of Vladimir Putin’s largest hydrocarbon markets, are doing their best to get rid of Russian gas and oil. .
With trade sanctions still in place, boycotting Russian energy should be relatively easy, but even for the UK, which fortunately is less dependent on Russia than others, it has proven complex, economically painful and diplomatic.
“A little help from OPEC would be good,” Warner said. Saudi Arabia, still at the center of this old cartel of oil exporters, is ultimately thought to be an ally of Britain. By increasing production, Saudi Arabia can easily ease some of the pressure on both supply and prices. “Thus helping to alleviate the cost-of-living crisis that is now wreaking havoc on the global economy.”
Saudi Arabia is like Putin’s dogs
The writer turned to explain the difficulty of this issue, saying: “However, at the moment, Saudi Arabia and OPEC seem more like Putin’s dogs than they are binding on their Western partners. “US requests for additional oil have been repeatedly denied.”
The writer stressed that Riyadh currently has to think again because it does not care about the unfortunate geopolitical signals it sends from its failure to act, and if such prices continue for a longer period, it will push the world into recession. In such circumstances, demand will fall sharply and prices will collapse. Oil producing countries will be the poorest for it.
High oil prices contain the seeds of their destruction
He also explained that experience has proven that the increase in the price of oil does not last long, precisely for this effect. Indeed, a phenomenon known as “backtracking”, in which futures contracts are traded at a lower price than the current spot price, has begun to show such a result. Acting as a powerful depressing force, high oil prices always contain the seeds of their destruction.
The writer noted that despite the extraordinary circumstances behind the current rise – first the sudden strong recovery of demand from the pandemic, then Putin’s deadly attack on Ukraine – there is little reason to assume that this would have been different. In fact, this is one of the reasons why OPEC is reluctant to increase production. In addition to a relatively modest partial reversal of pandemic-related cuts, already agreed for June.
OPEC refuses to help the West deal with Putin
The writer quoted sources as saying that there is almost no chance OPEC will do more to help the West confront Putin. On the contrary, partly because Russia these days has a kind of voice on the table of OPEC – OPEC Plus, as it is called. Putin wants to keep supplies as scarce as possible.
The writer noted that the sharp deterioration of U.S. relations with the Saudi royal family since Joe Biden took office. Noting that for Biden, Crown Prince Mohammed bin Salman is a pariah figure, forever cursed for the brutal murder of Saudi dissident journalist Jamal Khashoggi at the hands of a Saudi assassination squad, and appears
Biden refuses to communicate with “Bin Salman”.
He Biden could not meet or call the crown prince, in stark contrast to his predecessor Donald Trump, who continued to enjoy a good relationship with bin Salman even after the assassination.
Warner explained that Western observers are no less confused by Riyadh’s actions, as there can be no doubt as to where the royal family’s sympathies and interests ultimately lie, as Russia is essentially allied with Iran, Saudi Arabia’s regional and religious enemy.
Tensions between the United States and Saudi Arabia
The writer said there is an unfortunate truth about the world’s natural reserves, but many of them fall into the hands of hated regimes with horrific human rights record, including Russia and Saudi Arabia.
He made it clear that the United States should not worry too much about itself; Thanks to clay, it is self-sufficient in energy. This in itself has strained relations with Saudi Arabia, interfering with the impact it had previously had on the US economy through energy markets.
He explained that this pushed Biden to reach a renewed nuclear deal with Iran and to stop some arms sales in protest of the war in Yemen. This further undermined relations, which encouraged Saudi Arabia to seek new markets in China and India. Some say US-Saudi relations have never been worse.