Energy Hedging in Asia

Strategic hedging has not been studied adequately in Middle Eastern countries.This study is an attempt to include hedging into the analysis of a small state's foreign policy choices. It contends that the hedging strategy can be applied to small states because it allows them to confront/respond to risks/threats at three levels: international, regional and sub-regional. It is argued that Kuwait has pursued a hedging policy by taking possible shifts in the global and regional power distribution and the lasting regional security dilemma into consideration. By strengthening military cooperation with China and Turkey, Kuwait has aimed to hedge the risks that could arise from the rise of China and Turkey in the Gulf, the US' retrenchment from the Middle East, and Saudi Arabia's aggressiveness. The main purpose of this strategy is analysed as a move to empower the regional alliance with Turkey, ensuring Kuwait's security and warding off potential risks from the changing dynamics of the Middle East.

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The Oil Markets: Let the Data Speak for Itself

Till

2008

SSRN Journal

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Energy Hedging in Asia

Cited by 5 publications

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Miscellaneous Assets

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Hedging as a Survival Strategy for Small States: The Case of Kuwait

The Oil Markets: Let the Data Speak for Itself

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