GEOPOLITICS DISGUISES INTENTIONS IN OIL DEBATE
This week the markets have been even more jumpy, with every detail of the possible deal between Russia and Saudi Arabia to limit oil production sending markets either soaring or crashing, depending on the interpretation. Any deal is doomed to failure. Students of game theory will recognise that all parties will have a huge incentive to renege on any agreement and gain at their counterpart’s expense. On top of this structural flaw, the actors involved in this particular deal, Iraq, Iran, Russia and Saudi Arabia are all pursuing agendas beyond maximising oil revenues. The opportunity to screw over a rival will surely be too good to pass up. Read More…..