Russia and Saudi Arabia becoming allies

[StonyArabia]

Five years ago, the idea of OPEC and Russia working together on any oil and gas issue would have seemed absurd to any energy analyst worth his or her salt. But the unusual market circumstances of the past three years have made this unlikely scenario a reality.

Now, Saudi Arabia, the de facto leader of the industry cartel, is venturing to deepen political ties with Russia directly, based on mutual interests over the Qatar blockade and rebalancing the supply side of the world’s oil markets.

Now, Saudi Arabia, the de facto leader of the industry cartel, is venturing to deepen political ties with Russia directly, based on mutual interests over the Qatar blockade and rebalancing the supply side of the world’s oil markets.

In a Saudi first, King Salman will visit Moscow next month, where he will announce the monarchy’s support for “de-escalation zones” in Syria—a stance Riyadh previously despised. The change in mindset is a direct reflection of Russia’s easing of criticisms against the Saudi-led coalition’s fight against Houthi rebels in Yemen.

Saudi Arabia now plans to strike a deal with Moscow to extend the 1.8-million barrels of oil per day of OPEC and NOPEC production cuts that began in January. Nine months in, that agreement failed to raise prices to their previous heights.

But the joint efforts effectively thawed relations between Russia and Saudi Arabia—the latter a key U.S. ally on geopolitical issues until the end of President Obama’s term earlier this year. The rise of President Donald Trump on the world stage has shaken alliances across continents. His unpredictability in continuing or disposing of bilateral or multilateral partnerships is forcing other nations to take a hard look at their own diplomatic ties. They ask: which country will we really be able to rely on when times get tough?

The American entry in the oil and gas export game in December 2015 set the scene for Russia and Saudi Arabia to strengthen relations. Until then, all U.S. oil was redirected to American refineries, which would process oil for American consumption. The Arab oil embargo of the 1970s, carried out in retaliation for Washington’s military support of Israel, left a sour taste in Congress’ mouth, prompting the legislative body to ban all outward oil sales.

But the past 1.5 years have seen a rebound of American oil exports that has done much to negate the effects of OPEC’s production cuts—OPEC cuts that Venezuela desperately needed. Caracas’ demise, which grows more and more likely by the day as state-run PDVSA struggles to make good on its debt in this low oil-price environment, would ultimately be in the best interest of the U.S.’ anti-communism foreign policy agenda. So the public- and private-sector incentives for American actors to work with either Russia or OPEC to lower supplies—which are slim anyway under an America-first objective—just don’t exist at the moment.

This is why Saudi is keen on establishing a joint energy investment fund with Moscow and importing natural gas from the Russian heartlands. Though American production is actually higher than that of Russia and Saudi Arabia individually, OPEC and Russia combined can control half of global oil exports. Unfortunately for OPEC, the KSA does not have total political control over the countries in the bloc, as demonstrated by Qatar’s continued rebellion against Saudi’s coercive foreign policy tactics.

So far, Russia’s stance against Qatar, the world’s largest liquefied natural gas exporter, has been lukewarm. Moscow is officially neutral on the issue, but ostracizing Doha further would be advantageous for Russia’s natural gas industry. So far, Qatar’s energy ministry has boasted its timely shipments via an Omani port after being kicked out of its previous hub in the UAE. But recruiting non-Arab and non-Muslim allies in the united front against Qatar’s “sectarian” tendencies will add economic pressure on the small Gulf emirate.

Long story short, American fossil fuel interests and Trump’s election have propelled a Saudi-Russian alliance to match-made-in-heaven status.

http://www.businessinsider.com/russi...-allies-2017-9

[al-Bosni]

Russia is trying to take America's place as the superpower. They are trying to take America's allies. Pretty obvious.

[StonyArabia]

Russia is trying to take America's place as the superpower. They are trying to take America's allies. Pretty obvious.

America is on decline. Also the Saudis see America to have backstapped them, after 2003 in which they gave power to the Shia Islamist parties in Iraq, and thus the Saudis don't really trust the Americans. The Saudis also want to counter the Russian-Iranian alliance. The Saudis know that Russia does not have true allies, but looks for it's interest. However Russia wants to take place as the superpower indeed.

[al-Bosni]

America is on decline. Also the Saudis see America to have backstapped them, after 2003 in which they gave power to the Shia Islamist parties in Iraq, and thus the Saudis don't really trust the Americans. The Saudis also want to counter the Russian-Iranian alliance. The Saudis now that Russia does not have true allies, but looks for it's interest.

Yea, it's interesting. America has to gain their trust back that they are with the Sunnis and not Shias. Russia is clearly acting like the top dog.

[StonyArabia]

Yea, it's interesting. America has to gain their trust back that they are with the Sunnis and not Shias. Russia is clearly acting like the top dog.

The Americans are the ones who created the sectarian mess in the region. For example Iraq was quite secular. Also America often used Kurdish and Shia to revolt at the time during the Iraqi central government which was secular but Sunni Arab dominated, and would abandoned them, thus to create and stir hate ie divide and conquer. Saddam was really a threat to the Arab neighbours because he wanted to create super Arabian state annexing most of the Arabian peninsula, this was seen as threat by the monarchies, who had allied with the Anglo-American forces. However the Anglo-Americans wanted to region to balkanize, because it's for the interest for Israel. Ironically the U.S would allow Shia terrorist groups to roam Iraq, after 2003, causing carnage and mayhem where ever they went. This also made Iran more powerful in the region, which is now more of ideological and not only political threat to the Arab gulf states and Saudi Arabia.Now Saudi Arabia want to get back at the U.S for this and hence the formation of alliance with Russia. Because the monarchies in the Arab Gulf thought that, the Iraqi government would be replaced by either the monarchy or just new leader, but not complete change. They also Anglo-America responsible for the Sunni Arab genocide who were 40% and their number fell to 20%. This why Saudi Arabia began to supply water, food and other products for the Sunni regions of Iraq, and thus the relationship was cemented in friendship and brotherhood. This alliance with Russia has deep geopolitical elements in Mideast politics, but most of the Arab world is tired of Anglo-America. The new king is not much of an Anglo-American stooge, hopefully he will be like King Fisal

[Wadaad]

America today = 1950-1960s UK

[al-Bosni]

The Americans are the ones who created the sectarian mess in the region. For example Iraq was quite secular. Also America often used Kurdish and Shia to revolt at the time during the Iraqi central government which was secular but Sunni Arab dominated, and would abandoned them, thus to create and stir hate ie divide and conquer. Saddam was really a threat to the Arab neighbours because he wanted to create super Arabian state annexing most of the Arabian peninsula, this was seen as threat by the monarchies, who had allied with the Anglo-American forces. However the Anglo-Americans wanted to region to balkanize, because it's for the interest for Israel. Ironically the U.S would allow Shia terrorist groups to roam Iraq, after 2003, causing carnage and mayhem where ever they went. This also made Iran more powerful in the region, which is now more of ideological and not only political threat to the Arab gulf states and Saudi Arabia.Now Saudi Arabia want to get back at the U.S for this and hence the formation of alliance with Russia. Because the monarchies in the Arab Gulf thought that, the Iraqi government would be replaced by either the monarchy or just new leader, but not complete change. They also Anglo-America responsible for the Sunni Arab genocide who were 40% and their number fell to 20%. This why Saudi Arabia began to supply water, food and other products for the Sunni regions of Iraq, and thus the relationship was cemented in friendship and brotherhood. This alliance with Russia has deep geopolitical elements in Mideast politics, but most of the Arab world is tired of Anglo-America. The new king is not much of an Anglo-American stooge, hopefully he will be like King Fisal

Also, America is never attacking the Shia group "hezbollah" which they consider to be terrorists. And they are now in Syria fighting for Assad.

[monfret]

Nothing can save the harlot from the future turko/persian-qatari destruction.

[Arduti]

Sa'udis are cooperating because Sa'udia exports their oil through the Strait of Hormuz, and Iran keeps threatening to block Arab oil if they don't cooperate.

I don't care what ideological spin you want to put on it, that's the reason. Sa'udi regime always runs to Iran to kiss their rear-ends whenever there is a problem, to make sure they can still export. Crude awakening.

P.S. Shia population in Sa'udia has grown massively. Iran threatens that Sa'udia will become like Yemen if cooperation is not achieved.

[Egyptian]

America today = 1950-1960s UK

No bro , America still strong and better than uk during 50s .. america needs at least 100 years to be like uk in 50s.