Related Articles
Forward article link
Share PDF with colleagues

Russia benefits from standing its ground in oil price grey zone

Saudi sacrifice shows greater appetite for compromise in a price environment that is not win-win for the two Opec+ heavyweights

Saudi Arabia’s decision to sacrifice 1mn bl/d of production share in February and March demonstrated how far further than Moscow the kingdom appears willing to go to keep Opec+ alive. Russia, meanwhile, was appeased by the agreement that it could increase its oil flow by 130,000bl/d over the next two months. It is no secret that keeping the Opec+ alliance together is a greater priority for Riyadh than it is for Moscow. Saudi Arabia may boast the lowest oil production costs in the world. But it needs a much higher oil price to balance its books, with the IMF estimating the country’s fiscal breakeven oil price for 2021 at nearly $68/bl. Russia, which has a more diversified economy, is going

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Schlumberger pivots portfolio towards net zero
25 June 2021
Firm sets aggressive new 2050 decarbonisation promise with rare scope three emissions detail
Australia to subsidise remaining refineries
24 June 2021
Concerned about supply security, Australia plans to fund its last two refineries standing for at least the next six years.
Letter from Australia: Upstream industry commits to net zero
24 June 2021
Climate and carbon dominated the recent Appea conference
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video