Saudis Use Leverage Over Oil Pricing To Tempt Russia To Withdraw Support For Syria

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February 2, 2015

By Stephen Gowans

The idea that market share concerns are behind Saudi Arabia’s refusal to use supply management to prop up oil prices is challenged in an article in today’s New York Times.

According to the article, the Saudis “believe that there could be ancillary diplomatic benefits to the country’s current strategy of allowing oil prices to stay low — including a chance to negotiate an exit for Mr. Assad” by encouraging Russia to withdraw its support for the embattled Syrian president in return for the Saudis allowing the price of oil to rise.

Saudi Arabia can sway oil prices significantly by cutting back or increasing production. It is the leading player in OPEC, with a fifth of the world’s oil reserves.

The Saudis reportedly “told the United States that they think they have some leverage over Mr. Putin because of their ability to reduce the…

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