Russia will replay in the “price war” of Saudis left without US support

Taking a reckless step, Saudi Crown Prince Mohammed bin Salman this week provoked an oil price crisis that led to the collapse of financial markets and has every chance of ruining American oil shale producers, writes Business Insider. However, such initiative can cost Riyadh dearly by depriving him political and military support for the White House.

Although it seems that the Saudi step is intended to punish only Russia, its unspoken and obvious goal is the world's largest oil producer - that is, the United States, the business publication believes.

Over the past six years, the shale oil revolution has transformed the New World from an importer into a major exporter of “black gold”. At the same time, American manufacturers seized the share of markets previously owned by Saudi Arabia and Russia. Unlike countries dominated by large state-affiliated enterprises, the US commodity market is full of small companies that are burdened with debt and are faced with reduced profits.

Saudi Arabia already tried once, but failed to destroy the shale oil industry, dropping prices in 2014-2015, which caused massive bankruptcies and job losses in the United States, although the industry as a whole survived. The oil industry will undoubtedly survive today, but many jobs will also be lost, and in one of those few areas where Americans who have not received higher education could count on incomes with six-digit numbers.

However, this risky game may respond in another way that is extremely unpleasant for the authorities of the Arabian state, depriving them of unconditional support from overseas, which they have enjoyed so far. The United States previously approved the Saudi war in Yemen, although the humanitarian consequences of this conflict cast a shadow over Washington’s reputation. America also turned a blind eye to how its weapons fell into the hands of various militants or to the assassination of Saudi dissident Jamal Khashoggi. Just five months ago, American troops, along with Patriot anti-aircraft systems, were sent to the Middle East to protect the Kingdom from Iran. However, the alliance is now in question.

The British statesman Lord Palmerston, as you know, believed that states do not have permanent allies, but only interests. The Saudis, of course, behaved in this way, ignoring both friends and enemies. It is time for the USA to do the same

- Business Insider believes, stressing that bilateral US-Saudi relations are ripe for revaluation.

The United States should work with the Arabian monarchy where interests coincide, and allow it to go its own way where they diverge, the publication continues. Russia now has good opportunities to outplay the Saudis in the oil price war, and the next time they ask America to pull them out of the crisis that they themselves created, the United States must point them at the door.
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  1. Observer2014 Offline Observer2014
    Observer2014 15 March 2020 10: 51
    Russia will replay in the “price war” of Saudis left without US support

    The main thing in this trade war is not to finish off your citizens. And then from our income, the Saudis comels laugh. Fighters are trade. laughing Our people are so direct and eager for a commercial battle. wassat
  2. Sergey Latyshev (Serge) 15 March 2020 13: 32
    Yeah. Directly replayed and replayed. Their prime cost is 3 times less ...
    1. boriz Offline boriz
      boriz (boriz) 15 March 2020 19: 49
      Not everything decides the cost. At KSA, the budget is curtailed at an oil price of $ 75. Their economy is more tied to oil.
      1. Sergey Latyshev (Serge) 15 March 2020 23: 11
        There has not been such a price since 2008 ... And they all make up and make up ???
        This is some kind of miracle !!!
        1. boriz Offline boriz
          boriz (boriz) 15 March 2020 23: 28
          Have you heard the expression "budget deficit"?
          The United States has accumulated 23 trillion of external debt alone. And the debtor countries are full. No miracles. KSA has accumulated a large margin of safety and can afford to slightly lower the United States. In depressive markets, the main thing is not profit, but the preservation of markets at all costs. And the United States is lousy. It is not profitable for China to lower the United States; they are too tied. But to us - just a pleasure. The budget is surplus at an oil price of $ 42, reserves are more than enough. And, most importantly, the turnover of trade with the United States is below the level of urban sewage. And we have a wide selection of all sorts of nasty things for the US economy. Putin has just begun.
          1. Sergey Latyshev (Serge) 16 March 2020 08: 52
            They are absolutely right.
            Great Putin directly dumped the US economy with sanctions. From the age of 14 they have stagnation and stagnation, the dollar is falling and falling.
            And now - I look - USD 72,60 - the ruble directly brings him down.

            Lousy business in the USA. All experts have been safely reporting this to the population for 30 years!
  3. boriz Offline boriz
    boriz (boriz) 15 March 2020 19: 47
    It seems that the oil war of the Russian Federation and KSA is the struggle of the Nanai boys. The main victim will be the United States.
  4. DimerVladimer Offline DimerVladimer
    DimerVladimer (Dmitry Vladimirovich) 16 March 2020 10: 24
    Taking a reckless step, Saudi Crown Prince Mohammed bin Salman this week triggered an oil price crisis that led to the collapse of financial markets

    And what kind of reaction was expected? When Novak voiced his rejection of the reduction (the decision was made at a meeting with Putin on the eve of the OPEC + meeting, the opinion of Sechin, the opponent of the OPEC + deal, prevailed) Abdulaziz bin Salman tried to call Putin, but they did not even want to listen to him.
    “We will regret it today,” said Saudi Energy Minister Abdulaziz bin Salman, leaving the meeting.

    That is, the initiator who provoked the dumping of the Saudis is Putin and Sechin.
    It is precisely known who can be thanked for the collapse of oil prices.
  5. Bulanov Offline Bulanov
    Bulanov (Vladimir) 16 March 2020 10: 45
    It follows from this article that one might not be surprised at the possible Hushites' coming attack on the Saudis and their oil production?
  6. Roarv Offline Roarv
    Roarv (Robert) 16 March 2020 22: 32
    The author is from the YOOYOOOOPERNY Theater. How can you replay the Fed Press - ELECTRONIC SWIFT PAYMENT SYSTEM. Oil, gas resources of the Arab East ....
    1. Citizen Mѣshkov (Sergѣi) 17 March 2020 04: 43
      Maybe missiles like "Caliber" and further down the list?
  7. Astronaut Offline Astronaut
    Astronaut (San Sanych) 16 March 2020 22: 36
    In this whole situation, I personally am interested in only one question: why does the Saudi rial rate not depend on oil prices, and the Russian ruble rate depend on? Naturally, I'm talking about the exchange rate against the US dollar.
  8. Roarv Offline Roarv
    Roarv (Robert) 16 March 2020 22: 37
    There is one method to make liberals ours from the economic bloc - circumcision. And send the United States the Arab East to the EU and introduce them into the economic blocs of managing exchanges, banks, investment funds, so that they break up and equalize the level of the economy of the countries of the sanctionists with the economy of the Russian Federation.
    1. Citizen Mѣshkov (Sergѣi) 17 March 2020 04: 45
      They can’t get off with circumcision alone. Unless head circumcision ...