What’s Really Going On Behind the “Secret” Saudi-Russia Oil Deal – Astute News
However, another more pressing reason could be concern about how increased oil prices, particularly oil prices crossing the $100 per barrel threshold, may affect the global economy. Indeed, some well-regarded analysts have warned that if oil prices reach $100, it could lead to a global economic collapse and a collapse of the equity market. Yet, if a supply shock is prevented with Russia’s cooperation and the price of oil then stays below $100, those potential economic catastrophes may be averted.
Keeping oil prices below $100 per barrel may have been the deciding factor after all as the very release of the Reuters report that exposed the private Russia-Saudi deal led to a drop in the price of oil (albeit a small one). This led some analysts to suggest that the details of the deal were intentionally leaked in order to keep the price of oil from continuing to climb ahead of the November 4 deadline.
Regardless of Russia’s reasoning for privately cooperating with the Saudis and the U.S. to make the effort to starve Iran of its oil exports feasible, it is highly unlikely that either Russia or the Saudis will be able to prevent the coming supply shock after November 4. Indeed, just recently, China – which like Russia had vowed to aid Iran in resisting U.S. sanctions – “caved” to U.S. pressure, after its top oil importer Sinopec announced last week that it would reduce its Iranian oil imports by half. With China, the world’s largest importer of oil, set to wind down its imports of Iranian oil, a supply shock is all but guaranteed and, with it, $100 oil.
So many dominos set up to fall… So many bubbles to pop.. Which one will go first?