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



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Dated Brent—all change but business as usual
24 February 2021
The sheer scale of financial infrastructure around the crude market’s most important global benchmark means the wider trading market will largely shrug off any physical implications from a Fob-to-Cif switch
Letter from the US: Oil and gas sector faces cold hard facts
23 February 2021
Glacial temperatures in southern states showcase lack of provision against extreme weather
Upbeat outlook in Iraqi Kurdistan
23 February 2021
Oil and gas developers in the semi-autonomous region are looking forward to a year of rebound
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video