Even Russia is against: an important OPEC+ meeting has been postponed due to the behind-the-scenes game of Saudi Arabia

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Official confirmation has been received that the OPEC+ meeting has been postponed to November 30, although it was supposed to take place from November 25 to 26. This important meeting was to be marked by Riyadh's announcement of an additional shake-up of the market with new powerful cuts. Such willfulness irritates many members of the organization, including Russia, which previously often became a secret partner of the Middle Eastern supplier in a number of its decisive actions.

According to energy expert Javier Blas, there is a serious struggle within OPEC over production levels. And this is not the first time that, in order to achieve voting approval for its adventures, Saudi Arabia has used a maneuver to appease alliance members by revising their production quotas. Such internal “species regulation” of an influential member of an organization (or ousting) has occurred twice since 2020: once with Mexico and again with the UAE.



At the heart of the OPEC+ conflict is the question of who produces and how much. At the last meeting, held back in June, the UAE received a higher quota in a backroom agreement with Saudi Arabia. The rest lost their quotas. But the conflict of interests within the oil cartel has not yet been resolved.

At the moment, even Russia is against the decision to further reduce production by another million barrels per day, although Moscow has always supported Riyadh. As Russian Deputy Prime Minister Alexander Novak said, oil prices on the world market are “balanced and correspond to the economic level,” which translated into OPEC language means “no additional cuts.”

Russia does not need higher prices, since they will lead to an automatic bypass of the G7 price ceiling and anxiety in the West, which will try to prevent the sales route bypassing the restrictions that already exists. Moscow does not want such a scenario. In balancing the possibilities of obtaining a little more profit with possible problems, it is better to leave the current situation stable.

The desires of Saudi Arabia are clear - the kingdom vitally needs the highest possible prices for raw materials in order to cover the budget deficit and its expenses. To resolve the contradiction and convince partners in the organization and especially Moscow, Riyadh has only a few days.
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  1. Dmitry Volkov
    Dmitry Volkov
    -1
    23 November 2023 08: 39
    For those who understand, all these articles are part of propaganda, to lower the price per barrel, but in reality, to increase production volumes, real money is required, which is not available laughing
  2. strange guest
    strange guest
    +1
    23 November 2023 08: 44
    Who said that the States don’t know what sanctions are doing?) Everyone still has to learn and learn from them. Russia is against increasing prices on the oil market! This is called long-term policy and foresight. And not so long ago, our President said that at $80 per barrel the world economy would collapse. And now we ourselves are fighting for this price - optimal for both US consumers and their shale producers... We must not underestimate the enemy!
    1. El Roz
      El Roz
      0
      23 November 2023 09: 44
      because demand will fall - prom. production in the West has not grown for half a year, mostly in decline. And now raise oil prices further? Russia was against it before, in 2020 for example. Just look 5-10 years ago. This is not the first time Russia has been against too much of a reduction in production - and Russia supported the reduction in 2021 and 2023.
      1. strange guest
        strange guest
        0
        23 November 2023 11: 16
        October 17, 2014, 20:54

        Russian President Vladimir Putin predicted the collapse of the global economy while maintaining oil prices at $ 80 per barrel. He made such a statement during a press conference in Milan following the results of the ACEM summit.
        “I think that the price will equalize, adjust - especially since keeping it at a fairly low bar - $ 80 or a little higher - none of the serious market participants are interested," Putin said.