This content was created by David Oualaalou. This content was uploaded by David Oualaalou. This is a YouTube geopolitical analysis video titled "What Saudi Arabia & Russia Just Did Will Shake the Global Market!" (uploaded Sept 13, 2023). A single presenter (an analyst, labeled SPEAKER A) explains and assesses Saudi Arabia and Russia's decision to extend voluntary oil production cuts through the end of 2023 (Saudi ~1,000,000 bpd, Russia ~300,000 bpd — roughly 1.3M bpd combined), notes the immediate ~2% jump in oil prices, cites a statement by Russian Deputy PM Alexander Novak, and places the move in the context of the recent BRICS summit (new invitees including Saudi Arabia, Iran, UAE) and concerns about oil transactions shifting away from the US dollar (e.g., a Petro-Yuan). The video invites viewer comments and subscriptions.
Chapters
Hello everyone and welcome to Geopolitical Trends. As an analyst, I ask, what's behind Saudi Arabia and Russia's decision to extend the oil production cut? A message to the US? A message to the West? In this video, I'm going to provide you with my assessments and answer this fundamental question for you. Let's dive in. The moment Saudi Arabia and Russia announced their intentions to keep and extend oil production cut. Guess what happened? Oil prices jumped about 2% on the global market. So this extension of oil production cut will take effect till the end of the year, this year 2023. And yet the market has already reacted by seeing this jump in oil prices. So it's going to trickle down to you and me, of course, in the gas station or the gas pump, that is, when we start to notice the prices going up. So interestingly, Saudi Arabia extended this, by the way, voluntary production cut by about 1 million barrels a day. And this one will cover, of course, the, the, uh, sort of the additional 3 months. It's going to be from October all the way to December of this year. So the question we need to ask, as for me as an analyst, I want to ask it: what's behind this decision? Because this can't happen in a vacuum. Oh, just Saudi Arabia and Russia decided to cut oil, uh, or to maintain the production oil cut. No, no, there is something behind that one. So Saudi Arabia and Russia announced on Tuesday, as a matter of fact, uh, 2 days ago or yesterday, this extension of this voluntary cut in their oil production. As I mentioned, it's gonna go all the way to the end of the year. The Russian Deputy Prime Minister Alexander Novak said in a statement on Tuesday just 2 days ago, that, uh, uh, which is September 5th, uh, that, uh, his country Russia, that is, had to also extend its voluntary cut by about 300,000 barrels per day until the end of the year. So between the 2 countries, Russia and Saudi Arabia, you're looking at a million and a half, give or take, uh, to be exact, 1,300,000 barrels per day, which is not a small volume to be overlooked. He added— Novak, that is the Russian Deputy Prime Minister— he added, and I quote, this measure aims to strengthen the preemptive measures taken by the OPEC oil-producing exporting countries plus countries to maintain the stability and balance of markets, end of quote. But of course he's gonna have to say that because remember, markets always react to geopolitical events. That's why I always say geopolitics impacts everything we do. But here is the big thing that I would like you to get out of this video. You have to place this, uh, announcements within the, the context of BRICS recent summit in South Africa and what happened there. 6 countries have been invited officially to attend next summit in 2024. The 6 countries are Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and United Arab Emirates, which in my opinion undoubtedly will make the BRICS bloc far stronger, especially when you consider the last three oil-rich countries: Saudi Arabia, Iran, and United Arab Emirates. So here's the other thing we need to consider, is that the US concern— or we need to think about— is that the US concern lies now in having oil transaction conducted in another currency beside the US dollar. So there is already a conversation, uh, circling about, uh, the possibility of having the Petro Yuan replacing the Petro Dollar. What do you think? Because here's the thing, that will mark a seismic change on the global financial markets and as a result will significantly reduce the US dollar global hegemony. So what do you think of this decision by Russia and Saudi Arabia? Is it aimed at the United States or the West, or is it aimed at weakening the US dollar on the global market? So make sure to leave me some answers in the comment section. I always like to read your comments. And if you like the content of this video, I will greatly appreciate it if you hit that like button and don't forget to subscribe. As always, remember, geopolitics impacts your daily life in more ways than one. Till next time, bye-bye.
