Saudi Game of Thrones Threatens World Economy

© AFP 2023 / HASSAN AMMARA general view shows the bustling Saudi capital Riyadh, Late 03 October 2007
A general view shows the bustling Saudi capital Riyadh, Late 03 October 2007 - Sputnik International
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A power struggle between the House of Saud and Saudi technocrats has made the kingdom's energy policy increasingly unpredictable, putting the global oil market as well as the world economy at risk, Atlantico reported.

Oil workers are seen at the Khurais oil facility in an area where operations are being expanded, about 60 miles southeast of Riyadh, Saudi Arabia (File) - Sputnik International
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Riyadh surprised the markets earlier this month when a deal to freeze oil output at January levels fell through at a conference that many expected to be a formality. Saudi Arabia unexpectedly demanded that all OPEC members, including Iran, who was absent from the meeting, adhere to the agreement. Tehran refused.

Mohammad bin Salman al-Saud, the deputy crown prince of Saudi Arabia and the country's defense minister, is said to be the key advocate of the U-turn. This move had other supporters, French expert on energy and resources Francis Perrin told the media outlet. But it does reflect the "vision, influence, power of conviction and ambitions" of the unpredictable royal, who is responsible for Riyadh's controversial military campaign in Yemen.

© AFP 2023 / MOHAMMED HUWAISYemenis wave national flags and hold placards during a protest against the Saudi-led coalition, commemorating one year of the alliance's military campaign against insurgents on March 26, 2016 next to the Monument to the Unknown Soldier in the Yemeni capital Sanaa
Yemenis wave national flags and hold placards during a protest against the Saudi-led coalition, commemorating one year of the alliance's military campaign against insurgents on March 26, 2016 next to the Monument to the Unknown Soldier in the Yemeni capital Sanaa - Sputnik International
Yemenis wave national flags and hold placards during a protest against the Saudi-led coalition, commemorating one year of the alliance's military campaign against insurgents on March 26, 2016 next to the Monument to the Unknown Soldier in the Yemeni capital Sanaa

Riyadh's policy change, he added, is testament to the extent that the Saudi leadership "is obsessed with Iran."

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The oil kingdom has been unhappy that sanctions against the Islamic Republic were partially lifted following the nuclear deal. Barack Obama's overtures towards Tehran are also not helping to allay Saudi fears at a time when relations between Washington and Riyadh are going through a rough patch.

As a result, Saudi Arabia is trying to prevent its archenemy from reaping any inadvertent benefits from the kingdom's decisions. Iran does not want to freeze oil output, but instead is trying to regain its market share.

"Saudi Arabia's U-turn in Doha shows that the kingdom's oil policy is becoming increasingly polarized," Perrin said. "Riyadh's oil policy has been very predictable and professional for a very long time, but it is becoming increasingly hard to decipher."

This is a new and unnecessary factor that contributed to the uncertainty of the global oil market and the world economy. Most likely, it will also hamper any deal at the upcoming OPEC meeting in June. 

Meanwhile, on Friday, Venezuela urged Qatar to invite non-OPEC oil producers to the Vienna Ministerial Conference as observers in a bid to breathe new life into the initiative to freeze output and stabilize oil prices.

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