CBiBank Research Department:The Geopolitical Influence of Oil in the Middle East

in cbibank •  3 months ago 

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By Bill Fee
The Middle East remains a central player in global oil markets, leveraging its vast reserves for both economic gains and political influence. The region’s oil wealth has historically fostered rentier states, where the government’s revenue predominantly stems from oil exports rather than diversified economic activities. This reliance on oil rent has often been linked to autocratic governance, stagnating reforms, and socio-economic imbalances within the region

Globally, oil continues to be a tool of diplomacy and influence. Saudi Arabia, as one of the world’s largest oil exporters, has strategically used its oil to maintain close ties with powerful nations such as the United States, a relationship crystallized in the long-standing Quincy Pact. However, as the U.S. reduces its reliance on Middle Eastern oil, the region is increasingly diversifying its partnerships, notably with China and Russia, which are playing an expanding role in shaping energy policies

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