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Reuters
Arab newspapers, both paper and electronic, discussed the decision of Saudi Arabia and the UAE to increase their oil production by one million barrels per day.
The oil prices have witnessed a significant decline this week after the failure of OPEC members meeting with Russia regarding production cuts in light of declining demand for oil globally after the outbreak of the Corona virus.
Oil War: The worst is yet to come
Under the title “Saudi Arabia is Pricing the Crisis: No Return to Negotiations,” the Lebanese news in its editorial described the decision as “an additional step on the way to escalating the confrontation with Moscow”, adding: “With this, the two Gulf countries have adopted a unified stance towards the confrontation with the Russians, through their decision to pump Additional quantities, equivalent to 3.6 percent of global supply, will enter the market at a time when global demand for fuel will contract for the first time in ten years. “
In the same newspaper, Lina Knoush wrote an article entitled “The Oil War: The Worst Has Yet To Come”, in which she says it is likely that “this strategy will lead to a review of the Pharaonic economic projects of Muhammad bin Salman and his costly war against Yemen.”
The author stresses that the new decision represents a “severe blow to the American shale oil sector, which may be engulfed by a wave of bankruptcy in the coming months among small producers, as well as putting lending banks in difficult situations.”
- Does the collapse in oil prices reflect a war of “breaking bones” between Riyadh and Moscow?
“After the war in Yemen entered its sixth year this month, the Saudi and Emirati allies announced that they would join together in an oil war that may be no less fierce, with the aim of delivering a double fatal blow to all of Russia, which refuses to adhere to the OPEC agreement, reducing production by an average of 1.5,” Abd al-Bari Atwan said. One million barrels per day, to raise prices, and to the countries that produce shale oil that flooded markets with more than two million barrels per day, which led to lower prices as a result of a glut in global energy markets.
Atwan asserts that “Prince Mohammed bin Salman resorted to the strategy of shock and awe to terrorize the Russians and shale oil producers and forcing them to sit at the negotiating table in accordance with the Saudi conditions.”
The writer stresses that “the greatest victim of this war will be OPEC and the Gulf peoples, and the Saudi people in particular, because it will face strict austerity measures due to the decline in fuel and oil prices and revenues.”
“Russian roulette and Saudi rationality”
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Reuters
Under the title “Saudi Arabia and the Tame of the Russian Bear”, Hind Al-Ahmad says in the Saudi newspaper Al-Youm that the kingdom “dealt a blow to the Russian bear, when Russia rejected OPEC policy, then the Saudi reaction came back to Russia as a result of the Russian failure to cooperate to achieve the public interest of OPEC members. If Russia plans to raise its market share at the expense of OPEC member states, the Kingdom will reduce the price and raise production. “
The writer asserts that “the decision of the Kingdom of Saudi Arabia proves to the whole world that it is globally disposed of in the economy, and that it has local and foreign assets that make it not affected by the global economic crises.”
- Financial Times: Saudi Arabia will “suffer” after its decision on oil production
In the Saudi newspaper Al-Jazeera, Fadl bin Saad Al-Buainain confirms that Russia’s statements regarding its ability to adapt to low oil prices for a period of up to ten years “lacks realism, and may have been used to alleviate the shock of the collapse of oil prices that were not expected before, and I do not exclude the return of the Russians to negotiations. Once again, to stop the repercussions of its sudden decision on the markets. “
“The oil market is expected to swing between the Russian roulette,” the writer added, Saudi rationality affecting OPEC, and I think that the rationality supported by the force of the decision and its immediate implementation will contribute to reshaping positions, foremost of which is the Russian position, especially after they received a double blow formed in the drop in oil prices and the sharp decline of the ruble.
In Kuwaiti news, Mohammed Al-Khaldi wonders, “What is the wisdom of flooding the market at a time of declining demand? This will lead us to what is called in the economy by the market overstatement, where the supply exceeds demand much, which leads to the depression of the commodity (which is oil here) and the collapse of its value. In light of the fact That oil constitutes more than 80 percent of the income sources in our countries specifically, and this reality becomes a terrifying nightmare that seriously threatens our national economy. “
Al-Khalidi confirms: “So it becomes clear to us through these simple calculations that everyone is a loser, all the oil producers are losers because of the lack of agreement to reduce production, which is already imposed by reality.”
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