Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
For the time being, the animosity between Iran and Saudi Arabia seems to be too deep-seated to accommodate any change in global production levels.From Iran's perspective, any freeze is a means for Saudi Arabia and Russia to preserve the market share they took from Iran when sanctions were in force. Under the sanctions, Iran could not export more than 1 million barrels per day and the world's needs were met by increased Saudi and Russian exports. For its part, Saudi Arabia is in no mood to accommodate Iran. Iran also has a much larger population to satisfy than Saudi Arabia, compounding the difficulties for the Islamic Republic.Saudi Arabia may have the largest and cheapest traditional oil reserves, but it is very short on natural gas, which it needs to sustain the industrial development and population growth it has witnessed in the past 30 years.While it appears naive to think that Saudi Arabia and Iran would even consider trading oil and industrial investments for natural gas, one can argue that it would be very much in the interest of both parties.
FOLLOW THIS ARTICLE