Saudi Arabia’s decision to launch a price war in oil markets earlier this month could not have been more poorly timed, coming amid plummeting global demand for oil due to the COVID-19 pandemic. The Saudi announcement sunk oil prices to an 18-year low, near $20 per barrel, after five years at more than double that price, putting further downward pressure on already troubled financial markets. Saudi Arabia had gambled that by flooding the market and pushing down prices, it could punish Russia for refusing to cut its output, while recouping market share that had been ceded to U.S. shale oil [...]
With the global economy already teetering as the result of the coronavirus outbreak that is now officially a pandemic, Saudi Arabia’s young and powerful crown prince, Mohammed bin Salman, has risked pushing the world into recession by firing a shot directly into the oil markets. It was a trademark move by the prince, known as MBS, who has shown he can be brazen and ruthless—and occasionally self-destructive—when he’s determined to get his way. On Sunday night, MBS announced that Saudi Arabia would sharply increase its oil output despite a steep decline in global demand. It was precisely the opposite of [...]
In consecutive victories for the country’s oil-producing provinces, Canadian courts recently turned down challenges to a contentious plan to expand a major oil pipeline. Last month, the Supreme Court rejected a bid by British Columbia to block the expansion of the Trans Mountain Pipeline, which would triple the flow of oil from the tar sands of Alberta to Canada’s Pacific Coast, allowing more oil to be shipped to growing export markets in Asia. A similar legal challenge from indigenous groups, largely based on environmental concerns, was dismissed by a federal appeals court last week. The court decisions are likely to [...]
