The world oil flood is quickly rising. As we have seen in “Oil Flood (1): The Kingdom is Back”, the decisions taken by OPEC members and Russia not to curb oil production, while Saudi Arabia is forcing prices down, are much more about power politics and strategies than about economics and the “invisible hand” of the logic of “supply and demand”. We shall now focus on what the evolution of the current oil market reveals about current and future geopolitics. Since the end of November, especially since the 27 November OPEC meeting, prices have kept falling down, while the main producers, chiefly among them Saudi Arabia, Russia, Iran, and the private U.S. companies, have all decided, for reasons of their own, to maintain …

Continue reading “Oil Flood (2) – Oil and Politics in a (Real) Multipolar World”