Oil Boom or Oil Doom Saudi and Iran Oil Controversy are popping up
Oil Boom or Oil Doom Saudi and Iran Oil Controversy are popping up
The ongoing tension between Saudi and Iran seems a hot issue not only for the region but also for the global economy because these two countries are major players in world Oil production and have powerful influence in OPEC, as well. However, escalating feud between two countries is not just the oil boom or doom. It is just a multiplier act because Iran has severe concerns about Syria, Iraq and those Saudi provinces where Shitte live in majority.
And because of series of sensitive issues, Saudi & Iran Oil Controversy are popping up.
Previous execution of Saudi national but Shitte leader by Saudia further escalated that feud. Besides, Iran also seems that growing ISIS influence in Iraq and other regions are Saudi-backed and use starvation as a war weapon against Syrian people the obvious violation of basic human rights.
While from the Saudi side, that is followed salfiazam is strictly standstill to secure its influence in the region by keep supporting rebellions who support Saudi ideologies. And it is the big cause of concerns for Iran.
Iranian Policies Are Becoming the Eye Sours
Besides, after inking the pact on nuke deals with Western authorities, current Iranian policies are becoming the eye sours of Saudis. Riyadh is too much concern about that deal because local Saudi population is not so much educated to challenge that challenge.
It is obvious that Iran needs huge investment on its nuclear projects and selling oils in global markets is one of the highly lucrative options; hence, lowering oil prices by Saudis could be one of the indirect tactics to counter the Iranian nuclear progress but on the other side Iran seems keen to counter those Saudi tactics and replied by keep lowering the oil prices.
Some sources said that Iran is comparatively more progressive technologically and it has more resources to finance its economy than to rely on oil exports, solely. Iran must have innovated other resources because of the long embargo. Besides, increasing Chinese and Russian influence in the region with the support of Pakistan is also the added advantages of it.
Riyadh Seems Isolated
While Riyadh seems isolated and under the huge economic burden and it is the reason, Saudia lifted subsidies on oil for its citizens. Active engagement in regional Wars is also becoming entangled issues for it because it’s adversely affected the Saudian financial resources.
In the more simplified way, it not the oil war actually but the war for the throne. It is also the fact that Sunni Muslims are in the huge majority and they don’t like increasing Iranian influence in the region because it is also observed that Iran also practice dictatorship style in imposing Shiitte ideologies inside its dominance; hence, it would be unjustified to blame that, only current Saudis rulers are following dictatorship styles.
As it is already discussed that Iran gives more emphasis on technology and it is the reason, it attacked and hacked saudian Aramco computers that led huge catastrophes for the company and became paralyzed its computer operation for weak.
Different news are also on aired that China also has its reservation on increasing influence of Al-Qaeda, ISIS and other radical groups in its sensitive province and Iran has the apparent foe of that radical groups; hence, Iranian interest to be the part of Chinese-backed Pakistani CPEC project and Chinese acceptance are obvious signs to gain power in the region and if that plan is done with its robustness so it will be red sign for current Saudis rulings and elites who are being already experiencing challenges in their luxuries.
The unusual aspect is that as per standard economic principal, price surge as demand rises but because of fierce rivalries between Iran and Saudis, this notion is obsoleted as Saudis don’t seem to allow Iran to play as the standalone player or price setter in the global oil market. However, Iran is also in dynamic mode and inked different accords with several countries including Italy, France, and Greek, etc. Sources revealed that deal set the new record of seven lakh barrel within a short period.
Saudia is Aware
Iran knows the weak Saudis point that is to rely on oil production and how to use this weakness as the adverse tool against Saudis. However, its foe is also aware of that in spite of very late awakening; recent top Saudis officials’ visits to France to finalize some investment deals seem like a recovery plan but analyst told, now Saudis became too late, and the economic decline and increase in inflation rate are visible signs.
It is also evident that Iranian tactics are gripping in the region by keep out casting Saudis plan to increase oil prices to support oil boom by keep following the notion of oil doom. Saudis officials were very ambitious about prices and waiting to finalize their goal to get the fortune of investment or cash outburst because of Aramco’s public offering. But Iranian decision not to limit oil production drastically disturbed the whole Saudi’s elite plan.
Besides, Iranian officials are also serving their Asian clients at discounted prices. However, other players are just watching the saga of oil boom and wait for their move at the right time such as, “Once Nigeria, Libya and Canada resume pumping at their normal levels, the effects of the struggle between Iran and Saudi Arabia will be felt. If both increase production, the world will be awash with oil, pulling prices back to the mid $30/barrel levels”.
A tactical analyst suggested that there is a need of huge foreign investment with the flexible term in Saudian oil production sector to face oil boom or oil doom issues than just to rely on Aramco shares and performance, etc. it sounds simple but will Saudi allow to share their pledge? Some said they are already practicing that by serving US armies; however, it would be better to state that, let’s see what happens. But Iran seems very aggressive for foreign investment.
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