Vanand Meliksetian, OilPrice.com: Saudi Arabia And Russia Unlikely To Agree On New Oil Cuts
OPEC is dead, long live OPEC+. Arguably the collaboration between the world's two largest exporters of oil, Russia and Saudi Arabia, is a significant development caused by and comparable to the shale revolution in the U.S.
Desperate times require desperate measures. A decade ago, a partnership between Moscow and Riyadh would have seemed impossible due to contradicting interests. Recent developments have somewhat aligned the countries into what has been dubbed OPEC+.
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WNU Editor: I concur with the above analysis. Russia is more focus on gaining market share, not cutting back on production. Saudi Arabia is more focused on price, because they need high prices to sustain their budgetary needs. My prediction. Unless Saudi Arabia decides to ramp up production, thereby decreasing prices, there is going to be no agreement on production cuts.
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