Articles Tagged: Saudi Arabia

It’s Time for the United States to Start Worrying About a Saudi Collapse

s if there weren’t already enough problems to worry about in the Middle East, Saudi Arabia might be headed for trouble. From plummeting oil prices to foreign-policy missteps to growing tensions with Iran, a confluence of recent events is mounting to pose some serious challenges for the Saudi regime. If not properly managed, these events could eventually coalesce into a perfect storm that significantly increases the risk of instability within the kingdom, with untold consequences for global oil markets and security in the Middle East.

Saudis Make Push for Nuclear Energy

While the world’s attention has focused on Iran’s nuclear ambitions, other players in the Middle East have been laying their own plans to develop nuclear power to meet future energy needs.

IMF urges Saudi action on domestic energy prices and wage bill

The International Monetary Fund has urged Saudi Arabia to reduce domestic energy subsidies and its public sector wage bill as the world’s top oil exporter wrestles with plunging crude prices. Oil prices fell to a more than six-year low near $42 a barrel last month, while Saudi government spending increased after the king ordered bonus salary payments in January following his accession to power.

The Saudis Gambled and Texas Won

In November 2014, the leaders of Saudi Arabia made one of the biggest bets in history. Their strategy was flawed, and they’ve already lost. In an OPEC meeting that month, Saudi Arabia announced it would maintain high oil-production levels despite falling prices. The Saudis were betting that by keeping prices low they could protect their market share and kill America’s energy renaissance—a rebirth driven largely by Texas, which produces 37% of America’s oil and 28% of its marketed natural gas.

New Russian Arms Deals Could Shake Up Mideast Market

While Washington is concerned about Russia selling missiles to Iran, arguing it would “greatly boost Iran’s air defenses,” Moscow is seriously considering going further in arming the United States’ top ally in the region, Saudi Arabia. This possibility raises questions over the role Russia wants to play in the regional security framework in general and how its arms export policy serves its foreign policy in particular.

Yemeni forces launch Scud missile at Saudi Arabia: Houthi TV

Yemeni army units allied to the Houthi militia fired a ballistic missile toward southern Saudi Arabia on Wednesday, the group’s TV channel said, as combat between the kingdom and the Iran-allied group has intensified. “The Yemeni army fired a Scud ballistic missile toward Jizan,” Houthi-run Al Maseera TV reported on its twitter page.

Saudi Arabia in the Spotlight Amid Oil Price Rout — Energy Journal

The plunge in global oil prices has eroded an important pillar of Saudi Arabia’s strategy of pumping freely to shore up global market share: demand growth that once looked solid doesn’t look so steady any more, mainly due to concerns about China, The Wall Street Journal’s Bill Spindle and Summer Said report.

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