But Russia rejected this argument, citing the need to assess the full impact of the Corona virus on the global economy before reducing oil production, which is what Foreign Policy described as an illogical situation. There is currently no clearer effect of the epidemic on the global economy and the deterioration of oil prices. To its lowest levels.
The magazine pointed out that the main motivation behind the Russian refusal to reduce oil production is Moscow’s desire to compete with Saudi Arabia and the United States and cut off parts of their shares in the global oil market, and that Russia even called on Saudi Arabia during the OPEC + meeting in March to reduce its oil production by a greater amount than the rest of the producers. For their production.
But Saudi Arabia decisively refused to be a victim of Moscow’s endeavors to achieve its own interests at the expense of the Kingdom, so the latter came out of the March meeting announcing to raise its production from 9.8 million barrels per day to 12.3 million barrels per day, in an attempt to force Russia again to show some flexibility and acceptance to reduce its oil production to pay Prices have reached a point of equilibrium, so Russia has responded that it is prepared to bear the low oil prices.
But one month after the Saudi-Russian challenge reached its climax, it became clear how weak Moscow’s will was in relation to its ability to demonstrate self-confidence and its willingness to bear the losses of low oil prices, and this was evident in its agreement yesterday to agree with Saudi Arabia to cut production and push prices up, in contrast From her previous endeavors.
The news comes, at a time when a high-ranking Russian source drew attention to the fact that Russia and Saudi Arabia have removed the main obstacles to agreeing new cuts to oil production.
This was quickly reflected in oil prices, as oil futures continued to gain, while US crude jumped 10%, before returning and diminishing those gains.
OPEC + is working to reach an agreement to reduce oil production equivalent to about ten percent of global supply or ten million barrels per day, which is what member states expect to be an unprecedented global effort that includes the United States.