Collapse of Russia-Saudi Oil Deal Could Push Prices Down

according to It's rare the economics trumps geopolitics in the Middle East, but it may pay off at the pump. It's rare the economics trumps geopolitics in the Middle East, but it may pay off at the pump. As the market reaction to the strikes on Syria demonstrated, increased tensions in the Middle East often force oil prices higher. While economics have pushed the unlikely alliance, politics are generally the driver of strategic alignments in the Middle East. Moreover, aspirations for a long-term arrangement between Russia and Saudi Arabia to re-exert control over global oil markets could evaporate and change the course of oil prices for years to come.

Surprise: Russia-Saudi Oil Alliance Could Push Prices Down

Granted, such ideas are still nascent and the politics behind them fragile. While economics have pushed the unlikely alliance, politics are generally the driver of strategic alignments in the Middle East. There are all sorts of scenarios that could restore that tradition: A conflict between the U.S. and Russia beginning with a missile hit or impulsive tweet on Syria, for instance, could make it more difficult for the Saudis and Russians to focus on economic imperatives. An Iranian-made missile fired by Yemen's Houthis wreaking havoc in Saudi Arabia could also put Iran back front and center in the bilateral relationship between Moscow and Riyadh.

Trump Targets OPEC: Oil Prices 'Artificially Very High, Not Accepted'

as informed in Oil prices are artificially Very High! Oil prices are artificially Very High! Every time they lower interest rates, the cartel, because I call it a cartel-- the illegal monopoly-- raises oil prices. Now you have oil prices that are going to be over $100, and nobody in this country calls and says. Trump wants America to dominate the energy market, which requires prices to be sufficiently high to incentivize growth, which has happened at lower oil prices.

collected by :Victor Alphen