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Lower oil prices may have been a major concern for the oil companies, shale oil producers in the United States, and the US Federal Reserve as a drag to the inflation, but it has been a geopolitical advantage for the United States. Lower oil price would mean, lower revenues for countries like Iran and Russia, who the United States consider as adversaries. So when the OPEC members could agree over a production ceiling or freeze deal despite all the skepticism (including us) prevailing in the market, it should be seen as a victory but not for the US.

After the Second World War, especially during the cold war era, United States, and Saudi Arabia has remained a close ally. But that relation has come under strain recently when the United States secured a nuclear deal with Iran. In addition that, United States’ congress and the senate override President Obama’s veto and passed a bill (JASTA) that would enable US citizen to Saudi Arabia for 9/11 attack. This would strain the relation further.

Amid all that, this deal shows that the influence of Russia, which has been a supporter of Iran and was pressing for a deal, is growing in the Middle East and higher oil is sure to benefit the Russian federation more than it would the United States.