Saudi Trifecta 3.0

Saudi Trifecta 3.0

The conflict between Russian President Vladimir Putin and Saudi Arabian Crown Prince Muhammed bin Salman is curious, because less than one year ago, they literally high-fived each other at a G20 meeting. Also, both the Saudi crown prince and the Russian president share several characteristics: They both run repressive regimes and suppress their oppositions; they both lead large oil-exporting countries; they both have evidence of murders on their hands; and they both have long terms in office, with the royal family heading toward 100 years of power and Putin seemingly heading toward a leader-for-life role. They both have considerable leeway in their operations. And most interesting, Russia and Saudi Arabia, despite their much-discussed conflict, want the same thing: to reduce the viability of fracking, while slowing the world’s transition to renewable energy. President Trump has publicly claimed that lower gasoline prices are good for the U.S. consumer, and his indifference and at times hostility to renewable sources of energy have been made clear. In this curious confluence of interests among Russia, Saudi Arabia and theU.S., what will they decide is the proper price point for oil to meet their objectives, while causing themselves theleast amount of financial damage?

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