Igor Sobotin, in “Nezavisimaya Gazeta”, wrote about the consequences of the oil war that Riyadh had declared against Russia without coordinating it with its Gulf Cooperation Council partners.
The article says: The impasse in the oil war, which began with the dialogue between Russia and Saudi Arabia entering a dead end, could have political consequences for all Gulf states. Standard & Poor’s downgraded Oman and Kuwait’s credit ratings.
The IAEA experts draw attention to the fact that the authorities of the Arab countries, when setting their budgets, started from relatively high crude prices. For example, Kuwait expected Brent crude to reach $ 60 a barrel this year, and not drop more than $ 5 over the next year. According to experts S&PThe closure of Asian markets was an important factor in the export of crude from the Gulf countries.
Of course, the Arab power centers are trying to adapt to the new reality of the oil confrontation. Saudi Finance Minister Mohammed Al-Jadaan recently said that his country intends to cut budget spending by about 5% in the year 2020. However, these initiatives appear to be ineffective and late. The International Monetary Fund report for February drew a unfavorable scenario for the Gulf countries with more familiar prices for crude.
In the community of Western experts, they exclude that the kingdom’s sharp, but expected, game aimed at lowering oil prices and occupying traditional Russian oil markets, has been carefully coordinated with other members of the Gulf Cooperation Council. Thus, Saudi Arabia’s neighbors’ economy has been held hostage to Riyadh’s decisions.
In this regard, Oxford University researcher Samuel Ramani confirms, on Twitter, that the oil war between Saudi Arabia and Russia affected the classification of Oman and Kuwait. He concludes that “the domino-like economic impact can increase differences within the Gulf Cooperation Council countries and increase the deviation of Kuwait and Oman from the objectives of Saudi foreign policy.”
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