'Saudis Playing Dangerous Game As Oil Prices Plunge'

The Russian economy, which is heavily reliant on oil prices, is bearing the brunt of the low oil prices. For more on the falling oil and what it means for the Russian and Saudi economies – RT is joined by Michael Klare, an expert on natural resources, and author of 'Resource Wars, Blood and Oil'

Russia Plans $40 a Barrel Oil for Next Seven Years as Saudi Showdown Intensifies

THE TELEGRAPH: 'We will live in a different reality,' said a top Kremlin official. The message is aimed squarely at Saudi Arabia in a war for market share

Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.

Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.

It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti.

The cold blast from Moscow came as US crude plunged to $35.56, pummelled by continuing fall-out from the acrimonious Organisaton of Petrol Exporting Countries meeting last week. Record short positions by hedge funds have amplified the effect.

Bank of America said there was now the risk of “full-blown price war” within Opec itself as Saudi Arabia and Iran fight out a bitter strategic rivalry through the oil market. » | Ambrose Evans-Pritchard | Friday, December 11, 2015

Allah Knows Best! Only Allah Can Set the Price of Oil, Claims Saudi Minister as Concerns Rise over Iran Oil

According to Ali Al-Naimi, "no one can set the price of oil"

DAILY EXPRESS: SAUDI Arabia's oil minister has claimed that only Allah knows whether oil prices will continue to fall.

Ali Al-Naimi said that "no one can set the price of oil – it's up to Allah."

The country has decided not to cut its levels of production – and prices could fall further if Iranian crude oil returns to the market.

Sanctions on Iran may be lifted as part of an international nuclear deal.

But Al-Naimi said: "I am not worried about Iranian crude, nor will I try to predict what the price is.

"If I were to predict, I would be somewhere else, gambling." » | Tom Parfitt | Wednesday, May 06, 2015

Russia's Economy on the Brink with Falling Oil Prices

Oct. 21, 2014 - 5:10 - National Security Advisor to President Ronald Reagan Robert McFarlane on how President Putin is responding to situation

Iraq and Iran Plot Oil Revolution in Challenge to Saudi Arabia

THE DAILY TELEGRAPH: Iraq's goal of pumping 9m barrels a day of crude could be a game changer for oil prices and British companies

Iraq is poised to flood the oil market by tripling its capacity to pump crude by 2020 and is collaborating with Iran on strategy in a move that will challenge Saudi Arabia's grip on the Organisation of Petroleum Exporting Countries.

"We feel the world needs to be assured of fuel for economic growth," Hussain al-Shahristani, Deputy Prime Minister for Energy in Iraq told oil industry delegates attending a Chatham House Middle East energy conference.

Al Shahristani said on Tuesday that Iraq plans to boost its capacity to produce oil to 9m barrels a day (bpd) by the end of the decade as Baghdad rushes to bolster its economy, which is still shattered by war and internal conflict. Iraq was producing 3m bpd in December, according to the International Energy Agency.

Iraq's intention to challenge Saudi Arabia's status as the "swing producer" in the OPEC cartel could see a dramatic fall in oil prices if Baghdad decides to break the group's quotas and sell more of its crude on the open market. » | Andrew Critchlow | Tuesday, January 28, 2014

Syrian TurmOil: War Panic Sends Black Gold Prices to 2-year High

Washington and London's push for military intervention has taken its toll on the financial world. The threats have spurred oil and gold prices - while investors have rushed to pull their money from stock markets. RT's Katie Pilbeam looks at how the rhetoric has affected the world economy.

Oil Rises as Mideast Tensions Flare
Summary of business headlines: Oil prices rally on new Suez Canal concerns; Fed raises forecasts, but inflation shows up in January; Borders files for bankruptcy; Wall Street ends at new multi-year highs

A Warning from Chávez
Photo of Chávez and Ahmadinejad courtesy of the BBC
BBC: Venezuelan President Hugo Chavez warned oil prices could double if the US attacked Iran, as a key summit of oil exporters opened.

Mr Chavez told the summit of the Organisation of Petroleum Exporting Countries (Opec) the price of crude could reach $150 or even $200 a barrel.

Oil has been hitting record peaks of well over $90 a barrel as markets believe Opec will not boost production.

The Opec summit in Saudi Arabia is only the organisation's third in 47 years.

Saudi moderation

Mr Chavez kicked off the summit with a blistering attack on the US.
"If the United States was mad enough to attack Iran or aggress Venezuela again the price of a barrel of oil could reach $150 or even $200," he said. Chavez warning opens Opec summit (more)

Mark Alexander