Sunday, October 7, 2018

What’s Really Going On Behind the “Secret” Saudi-Russia Oil Deal

"On Wednesday, Reuters reported the details of a private and “secret” deal reached between Russia and Saudi Arabia, a deal that was aimed at increasing oil output in order to offset the coming shock to oil prices that will follow U.S. efforts to starve Iran of its oil revenues. Notably, Reuters also noted that the deal was struck with cooperation from the United States, even though Russia had publicly attacked the U.S.’ targeting of Iran via sanctions and had pledged to help protect Iranian trade to help keep the country’s economy afloat.
The private deal was reached in September between Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak, along with coordination from U.S. Energy Secretary Rick Perry. One of the sources that spoke to Reuters asserted that “the Russians and the Saudis agreed to add barrels to the market quietly with a view not to look like they are acting on Trump’s order to pump more.” The deal was struck as oil prices began to climb towards $80 per barrel. The oil price currently stands at just over $84.
Russia’s involvement in the deal may seem surprising given that Russia publicly vowed in August to do “everything necessary” to protect its shared economic interests with Tehran — including the estimated $50 billion in Russian investments in Iran’s oil sector that Russia has said will continue despite U.S. plans to sanction the Iranian oil and gas sectors beginning on November 4..."

at https://www.mintpressnews.com/whats-really-going-behind-secret-saudi-russia-oil-deal/250408/

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