Why Saudi Arabia's rivalry with Iran could keep oil prices down for years

OPEC, the world's leading group of oil exporters, this week declined to slash production, disappointing countries, such as Iran, that would like to see oil prices climb amidst a worldwide glut of oil and natural gas. The group's decision to maintain its level of output was led by Saudi Arabia, which somewhat mysteriously is keen to keep prices low.

Liam Denning at The Wall Street Journal writes that Saudi Arabia's move may be part of its ongoing rivalry with Iran over influence in the Middle East:

Partly as a result of this feud, Denning says that oil prices, currently below $70 a barrel, could remain below the triple digits for years.

The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Join more than 350,000 subscribers and keep yourself informed with a selection of The Week’s most interesting, enlightening and entertaining stories - plus daily puzzles.

Sign up