Saudi Arabia's Minerals Minister Ali left angrily, and this time the negotiations with the United States broke down again.
The United States is determined to get this shale oil, which is in the interests of the United States and its big conglomerates, but it is definitely not in the interests of Saudi Arabia.
Although Alibaba has stated on behalf of Saudi Arabia that it will continue to deepen cooperation with the United States in oil and can even provide the United States with crude oil supplies below international prices, the United States has refused to agree.
The United States believes that its energy strategy cannot rely solely on Saudi Arabia, which will in turn make them constrained by Saudi Arabia. Why does the United States cause so many troubles in the Middle East? Is it just for profit
If the United States can control Iran, Iraq and other countries, it will be fine even if Saudi Arabia breaks up with the United States. Saudi Arabia has a lot of oil, and so do other countries.
Saudi Arabia has always wanted to be the boss of the Middle East, everyone knows this. Their biggest bargaining chip is not that they have the largest oil reserves or the highest oil production, but that they are the birthplace of Islam. They own the holy city of Mecca, so they have a lofty status among Islamic countries.
Although Saudi Arabia has always said that it is a neutral country and does not participate in wars, it has purchased a lot of arms in recent years. For example, countries such as Israel pose a great threat to them. In order to protect themselves, Saudi Arabia wanted to buy intercontinental missiles from the United States, but the United States did not sell them.
Negotiations with the former Soviet Union also failed to reach an agreement. After all, the former Soviet Union supported Israel, so they found China.
At that time, China spent a lot of money on the research and development of the Dongfeng series of intercontinental missiles, and China was very poor.
Saudi Arabia wants to buy it, and China wants to sell it. It’s almost like they hit it off.
Then China sold thirty-five pieces to Saudi Arabia at a high price of US$100 million each, and it is said that one was also given as a gift. It also helped complete the construction of a complete missile base and trained relevant technical personnel. The service was very good.
At that time, Saudi Arabia not only provided money, but also provided China with some relatively advanced oil extraction and refining technologies, which China urgently needed.
The total amount of this transaction exceeded China’s foreign exchange reserves at the time!
It was also after that that Saudi Arabia discovered that the United States was unreliable. He began to frequently communicate with China and establish diplomatic relations. In order to check and balance the United States, Saudi Arabia has also established diplomatic relations with island countries. After all, island countries are also the world's top crude oil importers.
Although relations with the former Soviet Union are not good, and relations with Russia are not even good, Saudi Arabia still maintains normal diplomacy with Russia, and now has good relations with the European Union.
Saudi Arabia has built a huge diplomatic network with oil and money, just like the rich second generation has built a circle of friends with money.
How rich is Saudi Arabia? Oil is cheaper than water there. A full tank of oil costs less than six dollars, while the same amount of water can cost more than ten dollars. Their seawater desalination technology is also No. 1 in the world, and their seawater desalination capacity accounts for one-fifth of the world's desalination.
Desalination of seawater is very expensive, and it is not a problem for them. People all over the country still have a 24-hour tap water supply.
The missile base that China built for Saudi Arabia turned into a bustling city after a few years.
Saudi Arabia bought China's intercontinental missiles at that time. Was it useful? Yes, and it has a great effect.
Not to mention that at that time, none of the major countries that had intercontinental missile technology was selling it. China was the first, and it was poor at that time.
Then Sa Damu led Iraq to capture Kuwait in one day and drove directly to the Saudi border. At that time, Iraq's military strength was the No. 1 in the Middle East. It was all equipped with Soviet equipment, and Sadam was also a strong force.
But at that time, after Saudi Arabia released a video of their deployment of intercontinental missiles on satellite TV, Sa Damu also gave up. They could just use missiles to destroy Iraq. The range of that missile can reach directly from Saudi Arabia to the Philippines, let alone hit your home base in Iraq.
Since then, Saudi Arabia's status in the Middle East has grown. I won't hit others, but no one will hit me. If any of you think our missiles are small, then we will spend another US$3.5 billion, or even US$35 billion, to buy another batch!
However, Saudi Arabia, which can only threaten but cannot take action, wants to be the boss of the Middle East. In fact, many countries do not agree. But aren't there always wars over there? Saudi Arabia just throws money at them, provides food, medicines, and the other side supports them in some things.
This approach of the local tyrants is really effective. It is said that a lot of China's economic assistance to small countries in Africa has the same purpose as Saudi Arabia. I give you money and your voting rights, so you have to follow me.
In the past few years since the establishment of OPEC, and until it became the leader of OPEC, Saudi Arabia has always had smooth sailing. They have maintained good relations with big countries, and relying on the treasure of crude oil has made them very important in the hearts of many big countries.
But this time, the United States is going to affect their interests. If they don't express their feelings, I'm afraid the United States will think that Saudi Arabia is easy to bully!
Ali reported the situation to King Abdullah, and Abdullah asked him to return to his country. After returning to China, these dignitaries discussed together and came up with a good solution.
Some time ago, Iran and other countries asked for a reduction in crude oil production. However, Saudi Arabia did not agree at that time, and few OPEC members responded. Some even started to announce production cuts, and then announced increases.
Now that the oil price is high, do they want to extract more and sell it to make money? Who knows when the oil price will fall
This is also because there is no consensus among OPEC member countries, so there is no force. Although their production only accounts for 40% of the world's output, they are the largest net oil exporting country group!
Abdullah called other OPEC member countries to meet this time to discuss the amount of crude oil production.
Feng Yu heard that the Saudi Minister of Petroleum and Mineral Resources did not reach a consensus with the United States. It was said that his face was very ugly when he left, and there were no important news reports about crude oil from the United States. He had already determined that the matter should be settled. Oil prices should also rise sharply.
At this time, the price of crude oil has fallen again, and has fallen below 90 US dollars. Many experts even say that the price of crude oil may fall back to around 80 US dollars, or even lower.
If OPEC is not involved, then this possibility is very high. After all, a lot of funds have been invested in gold speculation. But as soon as the news came out, the results were self-evident.
Feng Yu called Kirilenko, Fu Rongqi and others to prepare and reduce hedging. Crude oil is going to rise sharply!
They have all been paying attention to the international news. Why hasn't the good news Feng Yu mentioned appeared yet
Just when they were impatient to wait, the OPEC organization publicly announced: Starting next month, OPEC's crude oil production will be reduced, massively!
As soon as this news came out, the whole world was shocked!
… (To be continued.)