Iran’s huge hydrocarbons reserves and Turkey’s growing demand for oil and gas seem to suggest great potential for energy collaboration. US sanctions and pricing disputes, however, limit and complicate the prospects of such a partnership.
In this week’s Monday Briefing, MEI experts Paul Salem, Jonathan M. Winer, Robert S. Ford, Mirette F. Mabrouk, and Charles Schmitz provide analysis on recent and upcoming events including the current uprisings in Algeria and Sudan, General Hifter’s effort to take Tripoli, the hirak protest movement in Algeria, the strategic partnership between Egypt and the U.S., and cracks in the coalition of President Hadi in Yemen.
Paul Salem
President
In this week’s Monday Briefing, MEI experts Robert S. Ford, Mirette F. Mabrouk, Nathan Stock, Marvin G. Weinbaum, and Jean-François Seznec provide analysis on recent and upcoming events including the government shakeup in Algeria, Egyptian President el-Sissi’s visit to Washington, rocket attacks from Gaza, Imran Khan’s war against poverty, and a $69 billion merger between Saudi Arabia’s oil and chemical giants.
Russian Foreign Minister Sergei Lavrov made a four-day trip to the Gulf in early March, stopping in Qatar, Saudi Arabia, Kuwait, and the UAE as part of a broader effort to boost Moscow’s ties with the region. Although the Gulf monarchies are traditionally considered of some of the U.S’s closest allies, relations between Russia and the Gulf have improved in recent years and there is potential for further cooperation going forward.
Although the Gulf is not highlighted on the official map of China’s Belt and Road Initiative, it is one of the main regions where the BRI is being implemented. On the occasion of President Xi Jinping’s speech at the 6th Ministerial Conference of the China-Arab States Cooperation Forum in June 2014, he declared the regional countries as being “natural cooperative partners in jointly building the BRI.” Since then, Chinese state and private firms, banks, and financial institutions have embarked on efforts to advance the BRI in the Gulf, particularly in the energy sector.
Disagreements between Baghdad and the Kurdistan Regional Government over oil policy have been one of Iraq’s most stubborn problems. Resolving this issue would allow for better development of natural resources, generate more revenue that’s badly needed for reconstruction, and might potentially deflate competing claims to disputed territories.
While OPEC and Russia-led non-OPEC members agreed to cut oil production last week by 1.2 million bpd, Riyadh’s ability to control the cartel and global oil prices is waning.
Giorgio Cafiero, CEO and founder of Gulf State Analytics, and F. Gregory Gause, head of the Department of International Affairs at Texas A&M University, join host Jerry Feierstein to discuss the state of GCC relations amid the Qatar dispute and other crises heading into the next GCC Summit.
In this week’s Monday Briefing, MEI experts discuss recent and upcoming events including Russian air strikes in Aleppo, the elections in Bahrain, the growing international interest in Egypt’s offshore energy finds, and the appointment of a new Afghan team of negotiators for peace talks.
Although the Trump administration has said it will issue temporary waivers to some major importers of Iranian oil, further declines in Iran’s exports are likely after sanctions come into effect on Nov. 4.
Although the current oil-market landscape might seem beneficial to the Gulf states, it will be difficult to sustain amid major drops in global oil supply, Washington’s standoff with Moscow and Tehran, and quota disagreements between Saudi Arabia and Russia.
Bearish and bullish factors are both at play in the global oil market, weighing on prices. The next big date on the calendar is November 4 — the point at which the 180-day wind-down period ends and U.S. sanctions on the Iranian energy sector are to be reinstated. Two days later, the U.S. midterm elections are due to take place.
Last week, major news outlets reported that China National Petroleum Corporation had acquired French oil and gas company Total’s share in the development of Iran’s South Pars gas field, citing an elusive article published by Iranian state news agency IRNA.
Even though energy production and exports are the lifeblood of all Arab states in the Gulf, the present crisis between Qatar on the one hand and Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt on the other has had very little influence on the economics of oil and gas either internationally or within the region. However, the countries involved have a lot to gain from a resolution of the conflict, particularly if it leads to greater energy market integration.
In this week’s Monday Briefing, MEI experts Charles Lister, Alex Vatanka, Randa Slim, and Marvin G. Weinbaum provide analysis on the US’s silence amid the Assad regime’s expansion, the Iranian president’s trip to Europe, the uptick in violence after Iraq’s elections, and the upcoming Pakistani parliamentary elections.
The decline of the US’s role in Syria
Charles Lister, Senior Fellow