Archive for: September 2016

Iran-Saudi Rivalry Concerns OPEC

Tension between Iran and Saudi Arabia is likely to hold OPEC back from achieving maximum oil production — which may indicate a rise in oil production for the oil organisation.

Analysts said that geopolitical complexities within the group could mean an immense rise in oil prices in the region. The rise is unlikely to affect major countries as the price of oil had turned down in the last few years due to excess supply from traditional producers and shale oil producers in the United States.

“The relations between Saudi Arabia and Iran are just so, so poor I can’t see any scenario under which Saudi Arabia would cut without Iran freezing and Iran has said so consistently that they just will not freeze until they reach pre-sanctions levels,” BMI Research ‘s oil and gas analyst, Emma Richards, told CNBC recently.

Fitch Group’s research arm BMI Research was not expecting an agreement on the production freeze at the informal meeting on the back of the conflicts within OPEC, with tensions between Saudi Arabia and Iran the “main impediment” to a deal, the house said in a recent report.

“We’re talking about a long-term i.e. 1,400-year chasm between the Sunni side and the Shia side. OPEC has only been around for 60 years so what we’re looking at now is the greatest chasm between the Sunni side of OPEC and the Shia side of OPEC,” Stephen Schork, Editor of the Schork report.

Merkel is The Only Remaining Voice In Europe

Populist Alternative for Deutschland (AfD) far-right party continues to gain supporters. Analysts said that it has effectively beaten German Chancellor Angela Merkel’s party in her own home.

According to some, it represents a great threat to German democracy as the country approaches its federal elections the next year.

The far-right party could quash Mrs Merkel’s chances of a fourth term. Analysts said the AfD could defeat Angela Merkel and it has gained influence without having a refugee or foreign face in sight. The experts also elaborated that it indicated the hollow nature of xenophobia.

Analysts said that the results could be shocking and embarrassing for Mrs Merkel. However, she does not have a figurehead of another party as a clear rival. Even if the AfD could gain strength, experts said without a possible figure, there is no chance the other party could win.

In both Germany and across Europe the polls are clear; the majority people do not want to live in the world of the AfD or the National Front. Only concrete successes at home – tackling the nitty-gritty issues of housing, healthcare and schools where migration and austerity pinches – will give leaders like Mrs Merkel the political credibility to tackle head-on the scaremongering and empty promises of the populists.