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Tag Archives: OPEC

REALIGNMENT IN THE MIDDLE EAST

Will Israel & Saudi Arabia join Hands against Iran?  The Middle East has long been considered the world’s most important region, given its strategic, economic and religious significance. It is the world’s largest oil- and gas-producing region – 65.5 percent of OPEC’s total output comes from the Middle East. It is the converging point of the jugular routes of global …

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Russia and Saudi Arabia, A New Oil Bromance?

The agreement to cut oil production has finally achieved its objective as the oil prices have shot up to $60 per barrel. The success in jacking up the prices is built largely on Saudi Arabia’s over-compliance and Russia’s recent compliance to agreed production cuts. Although historical precedents indicate that Russia has preferred a free ride on OPEC production cuts, recent …

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The Future of OPEC

OPEC was organized in the early 1960s by Saudi Arabia, Iran, Iraq, Kuwait and Venezuela with the primary goal of unifying the five countries’ oil export policies. The five countries certainly possessed that power when the cartel was initially formed, and while the cartel still produces about 40% of the world’s oil, OPEC’s dominance has declined over the years.

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