The rivals have severed diplomatic ties and are fighting by proxy in Yemen. But revenues from crude are now so low that they have been forced to act in concertThe Iranian endorsement of a method by its arch regional rival,Saudi Arabia, to stabilise global oil prices could be seen as a diplomatic coup for Riyadh.
However, and Tehran’s support for a production freeze has not been driven by a current desire for political rapprochement as much as acceptance of a greater enemy: collapsed commodity prices. The markets are flooded in crude at a time when demand is faltering due to the slowdown in expected growth from key importers such as China. Desperate times require desperate measures.
Continue reading...
Source: theguardian.com