Did The Saudis And The US Collude In Dropping Oil Prices? -- Andrew Topf, OilPrice.com
The oil price drop that has dominated the headlines in recent weeks has been framed almost exclusively in terms of oil market economics, with most media outlets blaming Saudi Arabia, through its OPEC Trojan horse, for driving down the price, thus causing serious damage to the world's major oil exporters – most notably Russia.
While the market explanation is partially true, it is simplistic, and fails to address key geopolitical pressure points in the Middle East.
Oilprice.com looked beyond the headlines for the reason behind the oil price drop, and found that the explanation, while difficult to prove, may revolve around control of oil and gas in the Middle East and the weakening of Russia, Iran and Syria by flooding the market with cheap oil.
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My Comment: As I had mentioned in a previous post .... the U.S. policy has been to promote green energy policies, and one of the cornerstones for this policy has been higher energy prices .... especially on oil. The price for oil has collapsed due to the following reasons ... (1) the use of alternative energy products (natural gas being one of them), the development of new technologies to exploit reserves that were not obtainable in the past, and conservation. As to the theory that the U.S. and Saudi Arabia colluding together .... I just do not see that, it is market forces that are now at play in setting the price of oil.
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