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Thu, Mar 12, 2020

Oil market meltdown?

Over the weekend of March 7–8, the breakdown of the previous oil production agreement between Russia and Saudi Arabia led to the broader collapse of the arrangement between OPEC and OPEC+. What will the rift will mean for the global oil market?

EnergySource by John Soughan

Coronavirus Energy Markets & Governance

Wed, Mar 11, 2020

Atlantic Council press call: Oil market meltdown: Price wars, coronavirus, and energy geopolitics

Last week’s breakdown of OPEC+ meetings in Vienna has turned a demand side driven decline in oil prices caused by the impacts of Coronavirus into an oil price war between two oil producing giants, with US shale production the ostensible target. If the standoff continues, however, the price war might ultimately do more harm to the Saudi and Russian economies. With increasing uncertainty about the depth of Coronavirus’ impact on global growth, the price war might also contribute to a sharp decline in the global economy. Helima Croft, David L. Goldwyn, Jean-Francois Seznec, Anders Aslund, and Randolph Bell discuss ongoing market volatility, the origins of the crisis, what’s next for US shale, and the implications of it all for energy and geopolitics

Event Recap

Coronavirus Energy & Environment
Manufacturing facility

Thu, Jan 9, 2020

The Saudi Aramco-SABIC merger: How acquiring SABIC fits into Aramco’s long-term diversification strategy

Throughout 2019, financial markets have watched the planned Saudi Aramco initial public offering (IPO), which was finally launched in December. A quieter, but no less significant, story was Saudi Aramco’s acquisition of SABIC. Saudi Aramco strove to have a successful IPO, especially through increased transparency and diversification, and the SABIC acquisition was a key element of Saudi Aramco’s diversification strategy. Going forward, what does the merger mean for both companies, what is the new relationship between Aramco and SABIC, and what are the merger’s implications for the intricate relationship between the various bureaucracies and leadership in Saudi Arabia?

Issue Brief by Jean-François Seznec

Energy Markets & Governance Energy Transitions

Jean-François Seznec is a senior fellow with the Atlantic Council Global Energy Center. He is also an adjunct professor at the McDonough School of Business at Georgetown University and at Johns Hopkins’ School of Advanced International Studies. He teaches classes on finance, energy, and politics in the Persian Gulf. He holds a MIA from Columbia University (1973), a MA, and his PhD from Yale University (1994). He has published and lectured extensively on chemical and energy-based industries in the Gulf, and their importance in world trade. He is interviewed regularly on national and international TV, radio, and newspapers. Dr. Seznec has twenty-five years of experience in international banking and finance, of which ten years were spent in the Middle East. Dr. Seznec is managing partner of the Lafayette Group, a US-based consulting and investment company. His research centers on the influence of the Arab-Persian Gulf, as well as political and social variables on the financial and oil markets in the region.