By Tilak Doshi – Senior Visiting Research Fellow, Middle East Institute, National University of Singapore
Re-Blogged From WUWT
It would seem that the Middle East oil producers cannot get enough of bad news these days. The coronavirus pandemic and the collapse in global energy demand in the first quarter of 2020 led to oil prices plunging into the mid-teens as Saudi Arabia launched the oil price war against Russia in early March.
Despite the subsequent historic OPEC+ deal in April to slash output by an unprecedented 9.7 million barrels per day (Mbd), oil prices have been stuck around $40/barrel since June. Prospects for an economic recovery for the Middle East – which already looked precarious after the steep fall in oil prices since mid-2014 as the US “shale revolution” took hold in global oil markets — now look significantly worse than that of other emerging market regions.