Crude Oil — Saudis Step in Russia’s Own Backyard

摘要

The Opec-plus agreement between Russia and its Opec partners has abruptly ended in an all-out price war after Moscow balked at an addi- tional 500,000 barrel per day cut. In a bid to stimulate interest from regional refiners and inflict maximum damage on competition, the Saudis have cut their prices for sales to Northwest Europe by a whopping $8 per barrel. They are now threatening to undercut Russian competition by flooding the market with 12.5 million b/d of production, an offensive that may cost Urals a significant wedge of its market share.