Arabs cast wary eye on Caspian oil.

The Middle EastNbr. 1999, September 1999

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Summary


The problem of Arab oil producing countries regarding low oil prices has been compounded by the prospect of vast oil and gas reserves in Central Asian countries. The Caspian oil reserves are speculated to be just under 40 billion barrels. The flow of these Caspian oil supplies into the world markets will further push down the prices of oil. Arab oil producers are still expected to continue to hold 35% of the global market share, but Caspian producers are likely to take 10% share by 2030.

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Arabs cast wary eye on Caspian oil.

Arab oil producers were quick to voice solidarity with Central Asian republics as they emerged from Soviet rule in the early 1990s. It was a solidarity driven by a sense of Muslim brotherhood and cultural affinity. But as the vast oil reserves of the Caspian basin start to flow onto already glutted world markets, Arab producers may be having se...

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