Russian officials and experts warned that oil prices will remain below $80 per barrel for some time, after OPEC’s decision not to cut output. It will hurt the economies of Russia, Iran, and Venezuela – and deal a blow to shale oil production in the US.
The fact the Saudi oil minister thinks oil prices will stabilize themselves shows that Saudi Arabia is not willing to intervene alongside the rest of the OPEC members to cut production, Jasper Lawler, analyst at CMC Markets, told RT.
If OPEC members decide to boost oil prices by cutting production, this may severely hit some of the cartel’s key customers in China and other Asian countries, Ed Hirs, Managing Director of Hillhouse Resources an oil investment firm told RT.
OPEC is not a monolithic organization and it fails to agree on common policy, so it’s unlikely that the upcoming Vienna meeting will become a deciding factor on oil prices, Adrian Salbuchi, International consultant, told RT.
Delegations from Russia, Saudi Arabia, Mexico and Venezuela have met for the first time in such a format for talks in Vienna to discuss rapidly dropping oil prices. The group agreed to monitor prices for a year
Russia is losing around $40 billion a year due to Western sanctions, but they are not as critical to the economy as lower oil prices, which add $90-100 billion in losses, says Russian Finance Minister Anton Siluanov.
The modern world is interdependent and there is no guarantee that sanctions, a sharp fall in oil prices, or the depreciation of the ruble won’t backfire on those who provoked them, says Russian President Vladimir Putin.
There are three possible outcomes to the OPEC meeting: either they leave the situation as it is, or stick to a 30 million barrel per day ceiling, or cut oil production, Stuart Elliott, Senior Managing Editor of Europe & Africa Oil News, told RT.
The current economic situation in Russia can’t be compared to the time before the global economic crisis in 2008, when Russia’s GDP contracted 7.8 percent, says Russia’s Finance Minister Anton Siluanov.
After an unsatisfactory stay at a hotel, a British couple took to the internet to vent their frustrations. Result: in addition to the £36 they paid for the room, they were also slapped with a £100 for violating the inn’s policy on leaving a ‘bad review’.