The dispute in Russia and Saudi Arabia over oil prices | World News
World News – The situation at the Opec meeting in Vienna last week, and given the negative impact on the coronavirus market, the meeting decided that the price of crude oil should be set at $50 a barrel or some more and reduce oil production, but Russia refused to accept both Opec’s decisions.
Saudi Arabia reacted severely to this. In this dissent, Saudi Arabia announced a reduction in the price of oil and an increase in production and shocked the Opec countries. After the announcement of Saudi Arabia, the price of crude oil in the market reached $33 per barrel, which was the first $60 per barrel.
In 2014, due to the increase in the production of American shell oil, the price of oil was reduced. In 2016, Russia and Saudi Arabia agreed that Opec countries would cooperate with each other in setting oil prices.
In 2020, Opec countries reduced oil production, which was due to the krona virus and the market was in serious decline. Saudi Arabia reduced the price of oil in March by six to eight dollars, and also changed the production of oil.
Russia and Saudi Arabia are counted in big countries to produce oil, their budget depends on oil efficiency. Due to this tension, Russia’s finance minister said, Saudi Arabia should set the price and increase oil production, but Russia can not compete. He further said that Russia can reduce the price of crude oil and sell $15 to $20 a barrel, in which there will be great trouble for Opec countries. Russia’s economist Sophia Dante said in a statement that Russia has the world’s largest oil and natural gas reserves.
Apart from this, Russia has reduced its annual budget to $5 billion as a safe capital, so it can sell 25 to 30 barrels of oil for the next ten years and meet the price reduction deficit with its safe capital.
On the other hand, Saudi Arabia has announced that it is adding up to 13 million barrels of oil production daily. The purpose of this declaration is to coat Russia. American experts say that due to this “oil war” of Russia and Saudi Arabia, America must have problems, but American oil companies will cope with this situation because it is the second-largest producer of self-determination. American experts also say that Russia has set up a wrong way, it can not hurt us.
But European experts are looking at the situation in other ways. They think Saudi Arabia has created a flood situation in Europe by increasing oil production, but Russia has the highest oil and can compete. According to the estimates and estimates of blu berg, Russia has large oil and gas reserves as well as large and modern infrastructure.
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Railways are big long pipelines, experts are present, they can provide oil and reduce the price further. China imports more than 70% of the oil for its domestic needs, in which more oil comes from Saudi Arabia. China is getting a lot of benefits from Russia and Saudi Arabia. It is believed that China’s industrial sector will get more than two percent profit.
China itself produces 100 billion barrels of crude oil every year, but China’s oil-producing companies are having trouble with oil because oil prices are affecting them, then those companies are investing in search of oil, they are also worried that the investment will be safe.
Similarly, experts from oil companies in Saudi Arabia expressed serious concern over the ongoing situation, saying that oil exploration companies are likely to suffer losses due to the price of $30 per barrel. These companies have pulled their hands off the investment. The tendency of a downturn in the market is also disturbing.
It is reported that the weekend market opening oil price has dropped by 30% and the price level is equal to 1987. The news from India is being told that India is the world’s largest third importer and spends $112 billion annually on oil, it is expected to benefit, but the price of oil is increasing due to low oil prices.
However, due to the ongoing war, Russian President Putin may have a slight problem that he has expressed his desire to be President by amending the constitution. It has to be seen, the truth is that decisions of this nature can cause major problems not only for those who judge but also on the sides.