The increased production of shale oil seems to break the back of OPEC. In a few weeks, the price of oil has dropped dramatically, diving from $100 now to $ 70. This has led the Saudis struggling to protect a market share and adopt a cut price strategy which would have to be followed by others.
Strategically it is a great time for the Americans as the current scenario shows:
a) the weakness of OPEC;
b) GCC countries will now be struggling to meet their budget targets;
c) Russia is further weakened;
d) newly emerging oil countries like Libya, Iraq and Iran can no more play the money power houses that they once were.
Geo political strategy led by geo economics.
Strategically it is a great time for the Americans as the current scenario shows:
a) the weakness of OPEC;
b) GCC countries will now be struggling to meet their budget targets;
c) Russia is further weakened;
d) newly emerging oil countries like Libya, Iraq and Iran can no more play the money power houses that they once were.
Geo political strategy led by geo economics.
No comments:
Post a Comment