Saudi Arabia mixes oil with politics
Saudi Arabia dominated foreign business coverage this morning after the kingdom quashed an agreement to suspend oil output at the Doha meeting on Sunday due to Iran’s refusal to attend. Bloomberg writes that “in doing so, the 30-year-old son of King Salman upended the Saudis’ decades-long approach of separating commercial from political considerations.” The move is “an indicator of how much [Saudi’s] oil policy is being driven by the ongoing geopolitical conflict with Iran,” said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University. Against that backdrop, we’re recommending the FT’s “The unpredictable new voice of Saudi oil,” (paywall)which says the meeting left Ali al Naimi, the kingdom’s oil minister for the last 21 years, “looking increasingly sidelined.” “Asked one unnamed Gulf delegate: “How can they go from agreeing to everything on Saturday and turning everything upside down on Sunday?” Said one analyst: “One of the main conclusions of the Doha meeting is that the Saudi regime has become very unpredictable.”