Once again there is an uproar that oil producers want to talk about freezing output. It sound very funny that while the big producers are not willing to curtail their production, they want smaller producers to reduce their output.
It is on record that Saudi Arabia has persistently increased its output, but wants Iran to agree to freeze output without reaching its pre-sanction output level. It is on record that lately Saudi Arabia has been pumping one million barrels daily above its historical average.
On the face value it appears that the rift between two OPEC members, Iran and Saudi Arabia is not a complete fallacy. Saudi Arab is not willing to curtail its output because it is afraid of United States and Russia, which are adamant at causing damage to its desire to become a regional superpower, surpassing Iranian might.
Both United States and Russia are fighting a proxy war with Saudi Arabia in Syria and Yemen. Both the super powers know very well that the only way to cause dent to Saudi lust for wars is by reducing its petrodollar income.
In my humble opinion if Saudi Arabia cuts its production and price goes up by one dollar per barrel, it will not be a major loser. However, this may pave way for the US shale producers to increase their output. But a point must also be kept in mind that the US shale producers have not gone bankrupt and continue to pose a major threat to Saudi Arabia.
Though, it may sound a little divergence from the topic, I just can’t resist from saying that the Zionists have completely brain washed Saudis who openly say that Iran is a bigger threat as compared to Israel. Having belief in this absurd idea, Saudi Arabia has emerged as the biggest buyer of arms.
I would also say that Saudis have enough petrodollars, if they stopped buying arms. Their animosity with Iran has been a cause of instability in the region but more importantly buying arms has not given it supremacy over its rival.