Vortexa: Russia is saving the global oil market that Saudi Arabia is destroying

The global oil market has not yet felt the full effect of the additional reduction in crude oil production by Russia and Saudi Arabia. This could lead to sharp tightening and explosive price increases amid shortages if the world's largest oil exporters keep exports low. The OilPrice resource writes about this.

The price of oil could exceed $100 per barrel if production remains low for an extended period of time. And Saudi Arabia just promised to extend the production cut by 1 million barrels per day until December. Such a step will definitely lead to a sharp tightening of markets and all the ensuing consequences.

However, there is hope that Moscow will save the situation. Experts suspect that Russia appears to be reneging on its promise to cut exports. Strong demand indicators indicate that the market is poised for tightening due to large volumes being received through indirect routes. Russian exports are also estimated to have fallen last month, but not as much as expected in August, when Russia promised to cut production by 500 barrels per day.

According to Vortexa estimates, the actual reduction in Russian exports is about 150 thousand barrels per day, and only this keeps the global industry from falling into the abyss of a crisis caused by an imbalance of supply and demand. Although this “balancing” of the industry occurs due to shadow transactions on the black market. If operations with oil from the Russian Federation were carried out through official channels, the forecasts and situation would be different than now. It turns out that by violating the Western embargo and sanctions, Moscow is nevertheless saving the market while its OPEC+ partner seeks to destroy it to suit its own goals.

Therefore, there is a possibility that market participants will not be too impressed by the cuts by Saudi Arabia and OPEC+ in general, since barrels continue to be partially supplied from the Russian Federation at the moment

- said the Vortexa expert.

However, throughout the world, reserves of oil and petroleum products are declining both on land and at sea (floating storage facilities), which reduces the likelihood of avoiding a possible supply crisis. If the current artificial situation of shortage continues, a crisis is therefore inevitable.
  • Used photos: pxhere.com
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  1. Sergey Tokarev (Sergey Tokarev) 9 September 2023 07: 36
    I don’t know who is saving whom there, but gasoline prices have risen sharply
  2. strange guest Online strange guest
    strange guest (Strange Guest) 9 September 2023 08: 43
    Give me oil for 300! Let Americans ride bikes!
    1. twice-born Offline twice-born
      twice-born (Unknown) 9 September 2023 09: 29
      Then our gasoline will cost 300! Our bourgeoisie won't get drunk!
      Everyone is crying that they are working at a loss, but behind the hill they are smeared with honey! And the Russians will endure anything for them, they will pay whatever they say!
  3. twice-born Offline twice-born
    twice-born (Unknown) 9 September 2023 09: 36
    What's in it for us?! The dollar is 100 and rising, and gasoline is priced at half a thousand and is also rising. Over the last month it has increased by 5 rubles, that’s 10%! In France, because of this, people took to the streets and rebelled for a year. And in 2 years, gasoline has risen in price by 10 rubles, and costs the same as in America!
    Inflation, real, not reported, for 2 years is 200-300%! And since 14, generally 600-700% for goods, cars and houses!
    And the authorities do nothing.
    1. strange guest Online strange guest
      strange guest (Strange Guest) 10 September 2023 12: 04
      What do you want, like in France?
  4. prior Online prior
    prior (Vlad) 9 September 2023 10: 34
    Russia saves the global oil market

    While Russia is saving the global oil market, the country does not have fuel to harvest the crops from the fields.
    There is simply no diesel fuel.
    Power! Where have you taken us?
  5. BMP-2 Offline BMP-2
    BMP-2 (Vladimir V.) 9 September 2023 11: 55
    Actually, Russia and Saudi Arabia seem to have an agreement. Or am I confusing something? If there are agreements, then this is not “saving the world”, but setting up a partner. Well, then you shouldn’t be surprised if it says “we were deceived again.” Business decisions must be consistent and predictable. Otherwise, business turns into war...
  6. Vladimir1155 Offline Vladimir1155
    Vladimir1155 (Vladimir) 9 September 2023 21: 08
    It is obvious that the dollar is in trouble and Siluanov’s efforts will not save it. The Central Bank of the Russian Federation will increase the sale of foreign currency by 10 times, China is buying gold, and oil-producing countries with excess currency can simply reduce oil sales, because oil is also a real asset no worse than gold, ..... then when the drolar collapses, it will be possible to trade this asset for hard backed currency, and not for green pieces of paper for lining toilets