...
This not to mention other oil-supplying countries whose gold and currency reserves are much more modest than those of Russia and Saudi Arabia.
“We [Russians] have a big enough safety margin to finance our obligations. … The current prices in the oil market suggest our reserves could be
enough for six years
,” Russia’s Finance Minister Anton Siluanov said in a recent interview with the Rossiya-1 state-run news channel.
The oil market urgently needs to be stabilized. Today the market is heavily influenced not only by the pandemic and the breakup of the OPEC+ ...
... barrels per day; however, 1.6 million barrels of these are in Saudi Arabia. Thus, if military hostilities or domestic conflicts render Saudi Arabia incapable of controlling its oil production level, no one will be able to replace Riyadh on the global oil market. Given the strategic purpose of complying with the OPEC+ agreement, Russia’s spare capacity today is 0.2–0.3 million barrels a day. Russian producers could use these capacities. However, this requires all OPEC/OPEC+ participants to take a joint stance on the issue.
Estimates vary as to Saudi Arabia’s prospects of ...
... budget will benefit from it as well as it will be replenished by the devalued ruble. However, this factor will weaken the pendulum effect, than remove it completely. The fate of the country's budget is fairly obscure, but for now one thing is clear: Russia will not turn the tide on the oil market; rather it will exacerbate the current situation.
Factor 5: China’s growth rate
Reuters
China’s rapidly developing economy and growing role as a major oil importer is one of the key factors impacting oil prices. In early May 2015,...
