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The Khashoggi Effect

The Khashoggi Effect

December 8, 2018 By admin

BY RSH Inc IN RSHinc On 08-12-2018

On October 2, 2018, Jamal Khashoggi a Saudi Arabian journalist entered the Saudi Arabian consulate in Istanbul but was reported not seen leaving. On October 3 rd , International news reports claimed Mr. Khashoggi was killed and dismembered inside, leading to an investigation by Saudi Arabian and Turkish officials on October 15 th , 2018. The United States CIA soon detailed Mr. Khashoggi’s death, labelling it as per orders of Crown Prince Mohammed bin Salman after extensive investigations. and presented to President Donald Trump, as well as
international allies- many of whom have since failed to adequately hold Crown Prince Mohammed bin Salman guilty- in part due to Saudi Arabia’s massive oil reserve.

Since October 2nd, however, Oil prices have plummeted, diving from a high of $84.16, to $59.46 as of writing this- This is in part due to OPEC’s and Russia’s planned output policy meeting in early December, with an expected output cut up to as much as 1-Million BPD(Barrels Per Day); which would lead to significant price increases of Oil- but more directly the unknown(s) revolving around Mr. Khashoggi’s death and possible retaliations by both the United States, and Saudi Arabia if actively prosecuted for such. In the past Saudi Arabia and the United
States have worked closely to control Oil Prices, leading to an increasingly profitable relationship for both parties as evident by multiple partnerships including the U.S.-Saudi coup against Mohammad Reza Shah Pahlavi in 1977 [1] ; which has been directly correlated with the fall of Iran’s Monarchy in 1979; as well as Saudi’s immediate release of over nine-million barrels of oil post 9/11 to keep Oil prices stable after an immense act of terrorism by Al-Qaeda against the United States.

If President Donald Trump, or any United States allies chose to retaliate or condemn Saudi Arabia for it’s actions against Mr. Khashoggi, many believe Saudi might opt to further cut production by up to 500,000 BPD on it’s own disregarding the United States’ interest in lower oil, and gas prices- in an attempt to further preserve and benefit it’s own economy. This simultaneously demonstrating the power Saudi Arabia has over the Oil Market, the United States and the Global Oil Market- leading to projected Oil Prices up of $85/Barrel; with concern that prices could be leveraged to July 2014 levels of $100+. What remains to be seen however, is how or will the United States retaliate.

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