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The Global Oil Controversy: Facts and Background

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The coronavirus, which started in December last year in Wuhan, China, has wreaked havoc around the world. According to conservative estimates, the epidemic has so far affected about 6.5 million people and killed almost 380,000 people. The world is currently in double trouble. On the one hand, there is the devastation of the coronavirus, and on the other hand, there is the onslaught on oil. The conflict between Saudi Arabia and Russia plummeted the crude oil prices and turned the world economy upside down.

The controversy began when the global epidemic of the coronavirus disturbed the supply and demand of crude oil. As a result, Saudi Arabia cut oil production to boost oil prices. Saudi Arabia wanted to use it to reduce the recession caused by Corona. But at the same time, Russia reacted and stopped cooperating with the Organization of the Petroleum Exporting Countries (OPEC), which was to some extent tantamount to challenging Saudi Arabia’s monopoly on oil exports to Asian markets.

Saudi Arabia has proposed to Russia to reduce oil production to keep the price of oil stable in the world market and maintain the balance of prices. Russia, however, not only rejected the demand but also withdrew from the Vienna Convention. Russia’s unexpected response resulted in the end of OPEC Plus, and this was the beginning of the oil war between Russia and Saudi Arabia.

Saudi Arabia currently has 18 percent of the world’s petroleum reserves, the most of any individual country in the world. Which makes Saudi Arabia the most prominent country in the list of petroleum exporting countries.

According to 2015 estimates by the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia has 267 billion barrels of oil reserves,  according to which, even if Saudi Arabia produces 1.2 million barrels of oil per day, it will not run out in the next 70 years, and if Saudi Arabia’s public investment funds and overseas assets are compared to Russia’s, then Saudi Arabia is far ahead of Russia.

In this situation, Russia’s economy, despite being a huge country, suffers from sanctions imposed by Western countries, while its most important industry is oil. If we look at the production cost of Russian oil, then it is much higher than that of Saudi Arabia. If capital and production costs are taken together, Russia’s costs take a completely different form, which in no way appears to be in a position to compare with Saudi Arabia’s. However, if only the cost of production is taken into account, Saudi Arabia can easily meet its targets even at low oil prices without facing any problems.

Technically speaking, Russia’s oil production is already at an all-time high, while transportation to and from the oil and gas markets remains a major problem. The oil dispute with Saudi Arabia is escalating, which is not a major concern for Saudi Arabia at the moment, but it is a matter of concern to the Russian government.

Following the conflict, the Russian president called an emergency meeting via video conference with the energy minister and representatives of the country’s energy firms, expressing concern that we had never faced such a situation in the global energy market before. Such fluctuations are an extraordinary development. He noted the sharp decline in the global economy and demand for oil due to the Corona and said that a concerted effort is needed to balance the energy market, such as the agreement reached between OPEC and oil-producing countries.

While the Russian government is disturbed by this extraordinary development, no statement or action by the Saudi government suggests that it is in financial trouble over the conflict. Russia and OPEC have not agreed on a new deal to cut off supplies, while Saudi Arabia has signaled a reduction in oil prices to boost supplies.

On the other hand, more investment is needed to sustain Russia’s oil and gas production. The dramatic increase in production requires a lot of cash and technology, which Russia does not currently have. Current sanctions on Russia, meanwhile, are already limiting the production activities in remote and central regions.

Russian companies do not have the kind of access to global financial markets that Saudi Aramco has. Whether the growth of Russia’s oil, gas and finance sectors has been hampered by Western sanctions, or whether Saudi Arabia still has the potential to enter the financial markets at a very high level, is more accurate.

In other words, it would not be wrong to say that the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, is back in the driving seat. (Note that OPEC does not represent all oil-producing countries. Several major producing countries are not members of OPEC, including the United States, Russia, China, and Canada. But the organization represents about 40 percent of the global market).

Saudi Arabia increased its production after Russia’s offer of a reduction in prices, followed by Abu Dhabi and, like Aramco, significantly increased its production. In my opinion, Russia did not expect such a response from Saudi Arabia and OPEC. Contrary to Russia’s expectations, OPEC members are regularizing their production, after which Russia will be affected by lower oil prices in the world market, more than expected.

Russia is a great power and it will certainly have economists, advisers, intelligent minds who keep an eye on world politics and the economy. Russia’s response, however, suggests that Moscow had no idea that if the Gulf Arab states increased their production, it would affect not only US oil but at the same time, Russia will be a victim.

Given the current economic and political background and foresight, Riyadh has played a very good masterstroke, offering to sell Saudi crude oil to European countries, including the United States, at very low prices. It is a timely decision by Saudi Arabia’s far-sighted and top economists that will adversely affect Russia’s consumer market, as Moscow has realized now.

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Will Pakistan Recognize and Accept Israel?

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The Muslim world is at a new turning point in history. The distance between Arabia and Israel seems to be closing. Israeli Prime Minister Netanyahu and Saudi Crown Prince have met. The US Secretary of State was also present at the meeting in Saudi Arabia. The world media is shouting at this meeting. If this news is true then it is a great development in world politics. The UAE, Bahrain, and Sudan have already joined Israel. What color will this friendship with Israel bring to the Arabs? Why are the Arab countries so anxious to embrace yesterday’s enemy? Will Pak-Israel anger last forever?

ALSO READ: Two Factors that are Blocking the Way of Resolving Palestine Issue

While the new global political development is a source of joy for the minority, it is also a source of unhappiness for the majority. Questions about recent developments also need to be answered. Experts say the meeting took place and that Israeli Prime Minister Netanyahu arrived in a private jet with the Mossad chief. He met secretly with the Saudi Crown Prince. The problem is that the results of the recent US election have upset many countries, including Saudi Arabia. After Biden’s victory, Saudi Arabia fears what the new US president will do. Saudi Arabia wants the support of the Israeli lobby in the United States. Saudi Arabia has extended a hand of friendship to both Turkey and Israel. Saudi Arabia does not want its relations with the United States to rupture. Will Saudi Arabia’s efforts work?

The first is that US foreign policy has implications. Four Muslim countries were destroyed by US foreign policy. Libya was devastated by Obama and Hillary. Had it not been for Russia and Hezbollah behind Assad in Syria, it would have been like Libya. The situation in Iraq and Afghanistan is also in front of everyone. The situation in Afghanistan and Iraq hurt the United States. Trump has not started new wars. Biden is under the influence of former US President Barack Obama. They are “dense” like them. Such people are dangerous. This threat is making the world restless.

ALSO READ: What is Pakistan’s Stance Regarding Recognizing Israel state?

Iran has also linked Biden’s victory to goodwill. Iran hopes sanctions will be eased. Trade routes to Europe will open for Iran. Pakistan will also benefit from easing sanctions on Iran. Pakistan’s goods will go to Iran and Iran’s goods will come to Pakistan. Saudi Arabia wants to curb Iran’s influence in the region. If anyone can look Israel in the eye, it is Iran and Turkey. Saudi Arabia will not be made of Iran. It is said that the enemy of the enemy is the friend, Saudi Arabia is also going to sacrifice its long-standing policy under the same policy.

The question is, when Pakistan’s friends are raising the bar of love and friendship with Israel, will Pakistan lag behind in this race? Will Pak-Israel anger last forever? Prime Minister Imran Khan’s position on Palestine is the position of the nation, in which he said that our policy on relations with Israel is the same as that of the founder of Pakistan. The founders of Pakistan have always rejected relations with Israel. He used to say, “This is a dagger inserted in the heart of the Ummah. This is an illegitimate state which Pakistan will never recognize.”

ALSO READ: CPEC & Chabahar Paving the Way for China’s Supremacy in the Region

Our position cannot be linked to the position of the Arab League or the OIC. Our position is based on the position of the founder of Pakistan, Quaid-e-Azam. If Pakistan backs away from the Palestinian policy, it will deviate from the Kashmir policy. Pakistan is a non-Arab country that has taken part in two wars against Israel. Pakistan’s policy is clear and cannot be changed. But our Prime Minister is second to none in changing his stance on every issue. As soon as the news of the Saudi Crown Prince’s meeting with the Israeli Prime Minister came, a certain group in Pakistan was deployed to form a consensus to recognize Israel.

A lobby of specialized intellectuals and journalists has begun work on the “Acceptable” mission. The government has started throwing leaves through social media. The past shows that our Prime Minister jumps to great heights, in this case too. If that happened then his followers would accept it as a blessing.

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Russia Released the video of the “TSAR BOMBA” (King of Bombs) Explosion

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Russia has released a video of the world’s most powerful explosion, which was carried out experimentally in October 1961 during the Soviet era. It was actually a hydrogen bomb with an explosive power of 3,300 times that of the atomic bomb dropped on Hiroshima.

The bomb, dubbed the “Tsar Bomba” (King of Bombs), was dropped on an island near the North Pole and detonated in the air at an altitude of 4 km above the ground.

With an explosive power of 50 megatons (50 million tons) of TNT, this hydrogen bomb is considered to be the most powerful bomb in human history, designed by the famous Soviet scientist Andrei Sakharov. This is the same Andrei Sakharov who was awarded the Nobel Peace Prize in 1975 after defecting from the Soviet Union.

ALSO READ: Explosion in Iran’s Nuclear Facility Opens up Another Round of Conspiracies

The 40-minute video was uploaded to YouTube by the Russian Atomic Energy Agency a few days ago, in which the countdown to the bombing begins at 22 minutes and 22 seconds:

The blast was so intense and large that it could be seen from a distance of a thousand kilometers, while its heat was felt at a distance of 250 kilometers.

The cloud formed by the explosion of this hydrogen bomb was so high that it reached an altitude of about 700 km, that is, the point where the Earth’s atmosphere ends and space begins.

ALSO READ: Is the World Moving Towards another Cold war or Soft War? (US-China End-Game)

We don’t know if there is an even more powerful hydrogen bomb in the world, but we do know that it was the most powerful experimental explosion in human history.

It should be noted that the original and technical name of the hydrogen bomb is “thermonuclear bomb”, the explosion of which emits tremendous energy in the form of light, heat, and shock waves but the emission of radioactive rays is much lower than that of a normal atomic bomb.

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Father Sold his Daughter To Buy A Smartphone and Motorcycle

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We often fall in with stories on social media and news channels highlighting the brutal face of the mentally sick people of the society.

Although, the crime rate has been declined amidst the coronavirus pandemic but a few people are out there to show their bestiality to the world by committing heinous conduct.

According to the National Crime Records Bureau (NCRB), an average of 80 murders, 289 abductions, and 91 rapes were reported across the country in 2018 in India on a daily basis.

A new heart-wrenching incident took place in the Chikkaballhar district of India. An inexorable father sold his daughter, who was only three years old, to buy a smartphone and motorcycle.

He sold his daughter to a childless couple for INR 100,000. And he bought a smartphone for INR 15,000 and a motorcycle for INR 50,000 with the money he got.

The parents had tried to sell the baby to a family in Bengaluru when she was born, but their plan failed as the hospital authority meddled. After this, another person got the wind of the situation and made a deal with them on the behest of a childless couple in another village.

After the man used all the money, his neighbor grew skeptical, and they found out that his daughter had not been at home. They informed the police who inquired some villagers including the mother of the baby. The child welfare committee found the girl and a case has been filed against the couple.

The father took to his heel but the mother was incarcerated. The authority interrogated her and she brought to the light that her husband had intimidated her that’s why she allowed selling her daughter.

What could be the rhyme and reason that goaded the parents to sell their own blood? Either they are mentally sick or the financial problems made them sell their three years old baby.

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