Saudi Arabia emboldened on world stage underpins OPEC decision

Bloomberg/Fiona MacDonald and Sam Dagher/4-3-2023

“Mere months after rebuffing President Joe Biden’s pleas to pump more crude, an increasingly confident Riyadh is using its regional clout to carve out its own path. Whether in the fields of energy or diplomacy, through forging ties with former foe Iran and moving toward embracing Syria’s pariah leader, it’s evidence of a determination to pursue Saudi priorities even if they run against Washington’s interests.”

USAGOLD note: The surprise production cut of one million barrels per day was important in terms of the effect on the price of oil. There might be an even more important geopolitical component with longer-term economic implications that needs to be understood. The warming of ties between Iran and Saudi Arabia may have given rise to an OPEC with  clout rivaling its heyday in the 1970s.