Tuesday, December 9, 2014

 
David Gardner at FT notes:

Wahhabi Saudi Arabia’s visceral hatred of the Shia – as well as its rivalry with the Persian and Shia Islamic Republic for hegemony in the Gulf and the Levant – should be factored into the oil price equation. Riyadh, sitting on foreign exchange reserves of more than $750bn, can ride out lower oil revenues. Iran, which needs the price to be twice the current level to make ends meet, is hemorrhaging. Already economically hobbled by sanctions, Tehran is by some estimates spending $1.5bn a month supporting its allies in Syria and Iraq.

from Bob Wenzel

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