By Pilar Martinez
Money & Investing Writer
Oil prices have been the next big topic of interest in the public eye since it affect everyone’s daily lives.
It’s used for cooking, heat, and transportation.
Saudi Arabian prices for oil have been at a constant low for a while now.
The price of Saudi Arabian oil has been threatening and hurting the Organization of the Petroleum Exporting Countries (OPEC), which has caused a ripple of effects.
However, Saudi Arabia is reportedly by no means willing to work with Organization of the Petroleum Exporting Countries to make prices reasonable.
Iran had previously been sanctioned by the United States of America.
The hidden role of Iran has been reviled to the world and highly has been discussed. According to CNN, “Iran, which has 60 billion barrels of proven oil in its southwest region alone, has been gearing up for this moment by having engineers work around the clock to prepare the country’s aging oil infrastructure. Once sanctions are lifted, Iran wants to immediately ramp up production by 500,000 barrels per day and by another 1 million barrels more by the end of 2016”.
Iran is preparing to come back full fledge with the oil capabilities.
The sanctions placed on them have restricted them from taking any actions towards their goal and it has been detrimental to their country and their economy.
However, they have been able to strategize in their time of punishment to correct their errors and come stronger than ever.
Saudi Arabia has not been able to help their get pulled of their rut and nor has many other countries they are allied with.
Saudi Arabians are power hungry and continue to assure the world that they want to set the precedent for oil prices.
If Iran’s sanctions are lifted they will be behind Saudi Arabia in the market which adds to the reason why they do not feel inclined to help Iran because they feel threatened and are trying make as much money as they can.
David Kotok said, “If you’re Saudi Arabia, lower oil prices are the single strongest tool you have in economic war (CNN).”
Saudi Arabia is undoubtedly holding onto the power they have waiting for Iran to come back and take their place in the oil competition.
These low prices are placing the Saudi Arabians at a level of authority they must prosper rom at this time.
According to OPEC’s mission statement, overall, the country members try to stabilize the oil markets (OPEC) which is why they have put the sanction in place.
However, once the sanction is lifted, Iran may influence the market in a manner, which Saudi Arabia is uneasy, with which could cause a large amount of tension.
This decision of Saudi Arabia’s influence on the oil prices is hurting the other countries part of OPEC which is making them unhappy.
This inevitably could cause more problems than good for the interactions between the countries because they can’t compete with the prices.
A version of this article appeared in the Tuesday, December 8th print edition.
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