How Saudi Arabia Turned Its Greatest Weapon On Itself

[djdefense]

Well, all this, "Let's put Russia out of business by dumping oil.", seems to have backfired. But, the following op-ed doesn't seem to say anything about the role of the US in all of this.

Anyways, don't kill the messenger guys, I just thought this needed to be posted here:

http://www.nytimes.com/2016/03/13/opinion/sunday/how-saudi-arabia-turned-its-greatest-weapon-on-itself.html?_r=0

 

[UAE]

There is no backfire whatsoever. Saudi Arabia can sustain low oil prices for decades to come juts by looking at its foreign exchange reserves and oil reserves. Lets not forgot that it was Saudi Arabia that brought oil prices down and it can within the blink of an eye make prices skyrocketing again.

 

[djdefense]

There is no backfire whatsoever. Saudi Arabia can sustain low oil prices for decades to come juts by looking at its foreign exchange reserves and oil reserves. Lets not forgot that it was Saudi Arabia that brought oil prices down and it can within the blink of an eye make prices skyrocketing again.

But what about the IMF's assessment that Saudi Arabia would go bankrupt by 2020? This of course, assumed that oil prices would stay low forever, but we are now seeing oil prices rise, which is a good sign.

IMF predicts Saudi Arabia will become bankrupt shortly | World Finance

 

[Corzhens]

May I join the banter here. From the last I had read, Saudi Arabia had agreed in principle with the OPEC clamor to lessen the production of oil in order to pump the prices in the world market. But after the week, a Saudi government official issued a statement that it cannot be done (the lessening of the production). What I see in that is the need of Saudi for money to finance their military force in Syria.

 

[djdefense]

Well, they are the preeminent military force in the region. And they have done the smart thing by getting other countries into an alliance. Going alone would have made them look like such a villain. I don't know about spending, but I am just happy about the revival of the oil prices. It affects everyone.

 

[explorerx7]

The Saudis have been playing a dangerous game, and it's mostly about seeking to sabotage Iran. They are manipulating the oil market whilst lavishly spending on arms and support to nations willing to side with them against Iran. These actions air aimed at pressuring Iran's economy to diminish its capacity to challenge Saudi Arabia for the leadership of the Muslim Society.