US, WASHINGTON (ORDO NEWS) — There is some irony in the fact that in the era of the dominance of the media mainstream that tells us about Russian interference in American politics and the alleged conspiracy between the Trump headquarters and Moscow, this same mainstream media readily swallows the bait of Putin’s propaganda and misinformation. Coverage of the Russian-Saudi oil war proves this, writes The Washington Times.
According to these information sources, the evil leaders of Saudi Arabia, and above all the Crown Prince Mohammed Ibn Salman, in March tried to crush global oil supplies. What was the main goal of this dastardly conspiracy? Destroy shale mining in the USA.
But in fact, this is what happened. Before the OPEC meeting in March, the Saudis, seeing how the coronavirus pandemic puts the global economy on the joke, proposed a significant reduction in production for all oil-producing countries, including Russia. But the Russians refused, although there is an agreement between OPEC countries to reduce production by one and a half million barrels per day. They did not just refuse to cut production.
They announced an increase, clearly intending to take market share from the US oil shale industry.
At a March meeting between Putin and the heads of Russian oil companies, the objectives of the Russian energy offensive were clearly stated. Then the head of Rosneft, Igor Sechin, said that low prices are “wonderful, as they will damage American shale production.”
In short, Moscow launched a price war and brutally miscalculated. The Saudis responded in the same way, increasing production and supply of oil to the market, although prices at that time all over the world fell sharply, and far below Russian cost. The Saudis did not succumb to Putin’s provocation, and Russia suffered heavy losses.
Outcried screams came from Moscow. Unable to give an answer by market methods, the Russians resorted to what they do best: propaganda. They did not allow any economic miscalculations. They became victims of the vile conspiracy of the Saudis, whose sole purpose was to ensure Riyadh’s world energy domination, as well as destroy the American energy sector. And they suffered the consequences.
And while the Russians are moaning in pain now, there is good news for us. The Russians lost this war, and the consequences for us and for our allies all over the planet and the Middle East are very positive.
Russia, like Iran, is very dependent on oil and gas revenues, which make up the lion’s share of its budget. Iranians, bending under the burden of sanctions and able to export oil only by a thin stream, are already concluding that they are not able to finance their foreign adventures and their Shiite proteges. The wave of revolutionary expansionism is waning.
We will see the same consequences from Russian adventurism in the Middle East. Lacking cash, Moscow will not be able to provide its troops in Syria and other places. She will be desperate to keep her base in Syria, but more and more she will not be able to afford the costs.
It will be difficult for the Russians to create new weapons in order to keep up with NATO and the United States. The new arms race, which is already creating problems for Russia, which possesses only a small part of the resources that the Soviet Union had, will be a defeat for it.
Rejecting Saudi proposals to reduce production, the Russians are now desperate to stop their blood loss. They agreed to a serious reduction in production, but damage has already been done to the Russian economy. Across Russia, oil wells are not just shut, but also sealed. Probably forever.
Meanwhile, we have a historical event. An American company this week sends a cargo of oil to Belarus, challenging Putin, who is trying to maintain his dominance over this former Soviet satellite. “This will undoubtedly cause fury among Russia, especially because the oil is American,” one Baltic leader told the Washington Examiner. “The Kremlin is struggling to hide any signs of contradictions with Belarus. But it’s impossible to hide them “. Secretary of State Mike Pompeo welcomed the sending of oil, saying that it was” a stronghold of Belarusian sovereignty and independence”, and then, sprinkling salt on Russian wounds, he said that this was the first, but far from the last batch of American oil for Belarus.
We have just witnessed a very short and very brutal economic war that the Russians unleashed, making one of the greatest strategic miscalculations in history. Our Saudi allies simply wiped their feet about them.
The US oil industry is still strong. We replenish our strategic reserves with cheap oil. We are non-volatile. And now we are also challenging Russian oil exports right on the threshold of Russia.
Yes, it was an oil war, and the good news is that the Russians lost in it.
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