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 in
Also in this section
19 March 2026
The regional crisis highlights the undervalued role of fixed pipelines in the age of tanker flexibility
18 March 2026
Rising LNG exports and AI-driven power demand have raised concerns that US gas prices could climb sharply, but analysts say abundant shale supply and continued productivity gains should keep Henry Hub within a range that preserves the competitiveness of US LNG
18 March 2026
Risks of shortages in oil products may cause world leaders to panic and make mistakes instead of letting the market do what it does best
17 March 2026
The crisis in the Middle East has put LNG’s ability to offer security and flexibility under uncomfortable scrutiny
