US Energy Information Administration informed that production of shale oil in the USA is expected to reach 5.4 million barrels a day in June, its highest level in more than a year.
Since November 2016 price of crude oil from Opec nations soared past $49 a barrel when the 14-member countries agreed on a production cut.
Now, the US juice could be sold at about $47 a barrel. Saudi Arabia and the USA need to be on the same side because OPEC needs to keep the production capped and that would happen only if Iran keeps its tap closed of its vast reservoirs.
Qatar’s rise is due to its deepening relationship with India.One of the many reasons behind this growing alliance is an abundance of natural gas which Saudi Arabia lacks in.What cherry on the cake is that the gas prices are cheaper and there are no Opec-like restrictions on it.
Saudi Arabia needs to be worried about its politico-economic hegemony and USA about its domestic recovery if Qatar makes tad bit changes with its gas reserves.
All the oil producers want to get involved with India including Saudi Arabia., Qatar has already taken with India which would intensify once the work on the gas pipeline begins.
Even in the worst of times, India may not face a rising price for its crude but will have to take decisions wisely like how much capital should flows from other nations of the Gulf.So, this time India has a better position and new face in the Gulf Crisis.