OilPrice: Riyadh suspects Moscow of tacit oil collusion with Washington

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It's hard to believe that those on opposite sides political Barricades Moscow and Washington can act as situational allies. Energy expert Simon Watkins nevertheless puts forward the version that the disagreements between Russia and Saudi Arabia, which are partners in OPEC +, are caused by just such a fact. According to the analyst, Riyadh suspects that Moscow is acting in a way that is beneficial to Washington at the moment. We are talking, of course, about the price of oil. Author's research published by OilPrice.

It is very likely that in the near future the quarrel between the formal allies in OPEC + will become publicly known when in Vienna the members of the organization try to agree on extending the previous reduction quotas or, as Saudi Arabia wishes, an additional reduction in production is required.



The main reason OPEC+ is likely to continue to surprise with more oil production cuts is because Saudi Arabia and some other OPEC countries need higher oil prices to survive and thrive. Theoretically break-even for the budget, the price of Brent crude in Saudi Arabia in 2023 is $78 per barrel.

For Russia, the situation is slightly different. According to the expert, for some time now Moscow's presence in the oil organization has become a burden on the Kremlin, as it fetters the maneuver of the Russian Federation, ties its hands, since the country's leadership has chosen a different tactic - to quickly respond to the situation, and also to take its profit rate at no cost (taking into account sanctions , embargo and price cap), but by the amount of cheap oil sold at a discount.

It is obvious that Riyadh is disgusted by such an approach in meaning and essence. On the other hand, the low price is very beneficial for Washington, which has been trying since the end of last year to find a situation where global prices will drop to the maximum level, and then start replenishing strategic reserves (SPR). The White House is not sitting idly by, moving in this direction.

This is precisely the tacit collusion of two ardent political opponents, each of which pursues its own goal in certain ways. While Moscow and Washington prosper, Riyadh suffers losses and image losses.

The expert wonders if a compromise between the two major OPEC+ members is possible? Of course, it is possible if, for example, Russia offers (supports) additional reductions, as the partner wants, which, in turn, will push the quotations of raw materials to growth, but Moscow, in order not to lose the attractiveness of its products, will simply increase the discount. Otherwise, the resolution of the conflict within the group is impossible, and Riyadh's suspicions will be confirmed and intensified.
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  1. twice-born
    twice-born
    0
    30 May 2023 11: 02
    And they are right to suspect. Judging by the results, at the moment Moscow is completely controlled by the Western terry clans. No one answered for the 300 billion dollars donated to the bourgeoisie, for the collapse of the army, too, they submitted to the ceiling of oil prices, prices inside Russia for everything are growing. And, most importantly, the Russians on the outskirts are dying on both sides, as one placed Jew proudly reported to another from Washington.
  2. skeptic
    skeptic
    0
    2 June 2023 10: 14
    A thieves' plowman - he is like that, because he has no other "kinship" like money and Judaism.