Be Prepared

We are now paying for the excesses of the past and everything is going to go down more than it should, says Jim Rogers, US investor and author. Meanwhile, China may play a key role in the showdown between Saudi Arabia and Iran, he added.

This week, crude fell to its lowest level in more than 11 years, while Iranian outrage over Saudi Arabia’s execution of a prominent Shiite cleric spells doom for any possible production cap deal that would have reversed the negative trend in oil prices.

Global Brent crude benchmarks hit $34.93 a barrel on Wednesday, down 1.5 percent from the day before and the lowest since 2004.Although low oil prices may be a boon for some countries, like China and Germany, it’s bad for oil-producers, like Venezuela, Russia and Saudi Arabia. However, since China remains largely neutral in the ongoing skirmishes that are continuing to rock the Middle East, it may hold the key to resolving many of the region’s most trenchant problems.

“China certainly does not want a war to erupt between Iran and Saudi Arabia, and China is seen as much more neutral than anybody else. America is not neutral; the Europeans are not seen as neutral…”

If anybody can calm things down it’s probably China,” Rogers concluded.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

Reprinted from Russia Today.

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