How Oil Prices Would Be Affected by a Conflict Between Saudi Arabia and Russia

r r

The ongoing tensions between Saudi Arabia and Russia have raised concerns about potential economic impacts, particularly in the energy sector. This article explores the potential effects of a potential conflict on oil prices, trade, and the global economy.

r r

The Verbal Tensions Unveiled: A Closer Look

r r

Recent diplomatic actions and verbal exchanges have portrayed a tense relationship between Saudi leaders and US President Biden. For instance, the refusal of Prince Crown Prince Mohammed bin Salman to shake hands with Biden during meetings and choosing to embrace Russian President Vladimir Putin symbolizes a realignment of geopolitical alliances. These actions have significant implications for future relations and could trigger trade imbalances, affecting the world economy.

r r

The Impact on Oil Prices: A Closer Look

r r

The price of oil is closely tied to geopolitical events, and a full-scale war between Saudi Arabia and Russia would likely cause a significant increase in oil prices. Several factors contribute to this:

r r r Increased Military Demand: Both countries have significant military operations, which would require a substantial amount of fuel. This would drive up demand and eventually price.r Disruption of Trade: A conflict could disrupt normal trade routes and logistics, causing a supply chain disruption that would affect global oil markets.r Collapse of Production Control: If the US reduces oil production to support its allies, it may empower cartels and Russia, which could further impact market stability.r r r

The Conference of Experts: Insights on the Price of Oil

r r

According to a leading expert, the price of oil would be a minor concern compared to the potential nuclear response from Russia. The expert suggests that Russia might use strategic oil and gas reserves against Europe as a weapon, thereby restricting oil and gas exports to the global market. Under such circumstances, oil prices could soar to unprecedented heights, reaching up to $250 per barrel. This scenario would drastically affect the economy globally, with potential ripple effects on the price of gasoline and other commodities.

r r

Global Implications: Extinction vs. Economic Turmoil

r r

A full-scale war between these two superpowers would have catastrophic consequences, possibly leading to the extinction of the human race. Even a "limited military action" would cause immense economic turmoil and significantly increase oil prices. The passage of two years of pandemic restrictions has already caused numerous social and mental health crises. A prolonged conflict underground could be unimaginable for most people.

r r

Given these risks, it is crucial to avoid any war with Russia. A military action should be considered as a last resort and should be carefully defined to minimize economic and humanitarian impacts. Any escalation should be considered with utmost caution, and diplomatic efforts must be prioritized to prevent such a scenario from materializing.

r