I was not implying a causal relationship between the attack on Iraq/Syria and oil, but questioning the claim that "oil is the reason" for the war, when the drop in oil prices happened well after the Iraq war had finished and ISIS had taken control of Iraqi wells, and some of syria's wells.
- GCC enticing Europeans with cheap oil so they welcome the GCC loot plan and enable dislodging of Russia as primary supplier.
- Iran coming up in the market and wants to ensure it has long term contracts in place to be able to sell its oil on a predictable basis
- The biggest consumer China going with Russians in big way cutting their share of supplies from GCC
- US domestic production increases driving lower crude imports from Middle-East
- In addition to the above supplier dynamic, the demand itself is dampened due to macro economic situation caused by slow down in China and lack of any signs of recovery in US and Europe.
Iran just issued a statement that they will produce 1 mbpd despite lower oil prices taking the GCC challenge head-on. So, the ball is firmly in GCC's court.
What we know is that:
1. Saudi/OPEC cartel unilaterally lowered oil prices
2. Saudis are deep in the red and have come to the point of putting up their family jewels (Aramco) on the stock market.
3. Saudi economy is on its way down due to huge entitlements given to its citizens
4. Iran is now going to be a primary source of oil for India
5. US shale oil companies are in the red, like canadian tar sands companies
6. ISIS's rapid spread was aided/funded by their ability to sell Iraqi/Syrian oil for the last couple of years
By 2011, NATO/GCC/Israel extended this chaos into Libya and by 2011 killed Gaddafi throwing the country into civil war. Emboldened by this easy "success", NATO/GCC/Israel carried this further into Syria, which forms the gateway to sell Arab Oil into Europe via Turkey.
The above does not make sense given that Russia was the primary supplier of oil to Europe in 2011 -- it is only after Ukraine that Russia is no longer supplying to the EU countries. Anyway, in the past few years, it looks like Russia is the target of all of these actions by the US, EU, KSA and its GCC allies. It looks like this drop in oil prices was just the mechanism to weaken Russian economy, and taken in concert with the crisis engineered by the US/NATO in Ukraine, cutting off the EU market for Russia was the other part of weakening the Russian economy. None of this explains this saudi penchant for committing suicide by reducing oil prices - granted that "stupidity" may top the list of reason why the Saudis would do such a thing, given that they are not the sharpest pencil in the box.