The new cuts will likely not do much to shore up oil prices.
The Middle East is facing an unexpected turning point. The region will not look the same after COVID-19 as it did before it. The geoeconomics and geopolitics of the world are in free fall because of COVID-19, the oil price war, and a severe economic shutdown. For the Middle East and the Gulf monarchies in particular, the oil price war against Russia and U.S. shale and the shutdown of economies around the world have increased the pressure on the Gulf’s already-depleted financial resources, which usually act as a safety valve for the turbulent region.
Saudi Arabia’s recent decision to call for an urgent OPEC+ meeting was driven by a simple logic. In spite of its obvious advantages over other oil producers, the kingdom is still taking serious risks as it pursues an oil price war.
The COVID-19 crisis could be deadlier than all the wars and civil wars in the modern Middle East. This should spur regional leaders to act urgently and cooperatively.
The different scenes in Baghdad tell the tale of a future that will, at the very least, present serious challenges, and at the worst could become chronically violent.
This Thursday, a postponed virtual meeting of “OPEC+ and Friends” will determine the level and seriousness of participation in a global oil pact.
Cratering demand for Qatar’s main exports has reduced its income to a fraction of what it was last year, but its nest egg is held in very illiquid assets.
As Hirak’s primary repertoire of contention has been biweekly protests in key cities, some worry that the COVID-19 lockdown is tolling the movement’s death knell. However, Hirak’s intellectual leaders have long called for supplemental tactics, noting that despite being among the most significant social, political, and cultural phenomena in modern Algerian history, protests alone may no longer be as effective as they once were in extracting meaningful concessions from the regime. Thus, as ill-timed and worrying as this feels for many of the Hirak faithful, the global health crisis may come as a significant political opportunity for the movement.
Saudi Arabia declared a price war against Russia in early March to prove a point: that it can offer an unprecedented supply of 12.3 million barrels per day (bpd), way above the record 11 million bpd it reached in November 2018, and expand its market share at the expense of Moscow. As the coronavirus pandemic brings the world to a standstill, the question is how long it can sustain this war.
Since the establishment of the Hashemite Kingdom of Jordan a hundred years ago, many have argued at one point or another that the country is on the brink of political or economic instability. It seems increasingly true these days, however. The unexpected shock of the COVID-19 pandemic adds even more pressure to the already floundering economy.
COVID-19 has disrupted both supply and demand around the world. Egypt is not immune to the recessionary trends caused by the sudden halt in supply chains and the sharp decline in demand, domestically and globally, resulting from the rapid spread of the virus.
No part of the world will emerge unscathed from the fallout of the coronavirus pandemic of 2020. Just because China and Italy were the first to be severely hit, does not imply, that when all is said and done, that they will have sustained the brunt of the damage. North Africa is a region dependent on global commodities prices, tourism, and political and monetary support from Europe and the Gulf, where regime brittleness, youth unemployment, and Islamic radicalism all intersect.
The Lebanese are in trouble. Lebanese leaders have borrowed and spent money for decades without addressing fundamental flaws in their state, economy, and society — operating in an order that, while not the cause of every problem under the sun, aggravates their poor politics, policy, planning, and governance.
Amid an unprecedented political, economic, and financial crisis and the emergence of a new threat from the global coronavirus pandemic, Lebanon needs all the help it can get. The U.S. has long been an important source of assistance, and yet, as conversations with officials in both Beirut and Washington make clear, the argument for halting U.S. aid to Lebanon seems to be gaining ground.
In the face of Algeria’s Hirak protest movement, the response of the EU so far has been measured, and it is notable that the EU’s calls for democratic reform are framed in economic terms that emphasize the benefits of greater economic integration between the states of the Maghreb. What opportunities do the ongoing changes in Algeria present for enhancing economic integration in the long term?