• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 15 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 2 days Once seen as fleeting, a new solar tech proves its lasting power
  • 6 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Breaking News:

Oil Should Stay In Triple Digits: Analyst

China To Subsidize Refiners If Oil Prices Exceed $130

China To Subsidize Refiners If Oil Prices Exceed $130

China will provide subsidies to…

Shell Warns Spare Oil Capacity Is Running Very Low

Shell Warns Spare Oil Capacity Is Running Very Low

Global spare capacity is running…

Has OPEC+ Reached Peak Production Capacity?

Has OPEC+ Reached Peak Production Capacity?

As oil prices continue to…

Editorial Dept

Editorial Dept

More Info

Premium Content

Russia Has Won Its Oil War With Saudi Arabia

Oil prices reached the highest point since February 2020 this week after Saudi Arabia’s surprise announcement at the monthly OPEC+ Ministerial Meeting that it would voluntarily cut an additional 1 million barrels per day from its oil production. This extra cut--by the only true swing producer in the group--more than offsets the increases in production granted to Russia and Kazakhstan, and is a completely different outcome to that which analysts and industry experts had expected. 

Saudi Arabia and Russia--the two most powerful members of the OPEC+ alliance--have been at odds over how to respond to the changing oil market and lowered demand. Russia is concerned that U.S. shale will take advantage of any decrease in production that OPEC+ members make. And it isn’t entirely wrong. Russia is focused on market share. Saudi Arabia, on the other hand, is focused on price. Although the word “price” is never used. Instead, the phrase “market balance” or “restore balance to the market” is preferred. With Saudi Arabia cutting a million barrels per day, two things are clear: 1) The Saudis senses a slackening in the market, likely due to refinery maintenance season in Asia and a new flurry of lockdowns due to the new more virulent strain of Covid-19, and none of the other producers can afford to (nor are they willing to) reduce production further. 2) While Saudi Arabia remains the most powerful member of OPEC, its power is diluted…





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News