Saudi Arabia’s pyrrhic oil war triumph
The kingdom may consider it has prevailed over Russia and US shale producers in the short-term, but its longer-term prospects are clouded in uncertainty
Riyadh has scored some impressive victories in the month-long oil price war it and Russia unleashed, and which has ended in a three-way truce of sorts, crucially also involving the US. But analysts caution that any supply-side calm necessitated by the unprecedented global health and economic emergency—and oil demand destruction—posed by the Covid-19 pandemic may be fragile. It may be too early for Saudi Arabia to celebrate: continuing elbowing for market share, especially in Asia, is just one sign of ongoing challenges. Outwardly, at least, Saudi Arabia appears triumphant. There are few more public ways to project an image than to buy a European football club, in its case a bid for England’s
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
