OIL WARS – The Coming New Disaster?
By: Marwan Salamah*
Dec 25, 2014
If protecting market share is OPEC’s primary objective in not reducing oil production, and if oil prices remain depressed or continue their downward journey over the next few months, then it becomes only a matter of time before OPEC members begin to pounce on each other’s market shares and on non-OPEC shares.
In such a scenario, the outcome is likely to be in favor of whoever has the lowest cash production costs and the highest surplus funds to weather the oil revenues squeeze. Of the big producers, Saudi Arabia and Kuwait are the best positioned to win such a price war and Venezuela and Nigeria are likely to be the biggest losers followed at some distance by Iran, Iraq and then Russia.
There are many possible outcomes. One is where Venezuela goes bankrupt and implodes politically. This could lead to government change, which probably is not an unwelcome outcome for the USA. Continue reading “OIL WARS – The Coming New Disaster?”