[FoRK] geopolitics of low oil prices

Lucas Gonze lucas.gonze at gmail.com
Sun Jan 10 21:24:49 PST 2016


http://www.usatoday.com/story/money/cars/2016/01/10/oil-gas-prices-one-dollar-gallon/78080908/

First the quote:

"Gasoline prices are driven mostly by four factors: oil prices, proximity
to refineries, refinery capacity and state taxes and levies. Oil prices
have dropped below $33 a barrel and continue to collapse. The recent
decision by Saudi Arabia to continue to keep its oil exports high
essentially has dissolved the OPEC cartel. The decision also has forced the
kingdom to chop its 2016 budget."

Now the red meat:

What are the geopolitics of that choice by the Saudi's? In particular, how
does it benefit them in their conflict with the Iranians?

What I don't know is why the Saudis are willingly doing this to themselves,
given their reliance.


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