Can Russia, Saudi Arabia strike new OPEC+ deal with US help?
As the OPEC+ deal has expired, Russia and Saudi Arabia remain at odds, though the United States offered encouraging words that production cuts might be negotiated.
The Russian-Saudi feud over oil production has destabilized the market even as the industry faces anemic demand and the potential for a legion of layoffs because of the coronavirus pandemic.
On the heels of plummeting prices, the market rallied April 2 after US President Donald Trump, perhaps prematurely, announced via Twitter that Saudi Arabia and Russia appeared ready to compromise on production cutbacks. But some analysts warned that the Saudis seemed "much more measured" in their statements.
Russia has withdrawn from the OPEC+ deal among oil-producing nations to cut production and regulate the market, and Saudi Arabia announced earlier this week it would increase its oil output. The breakup not only sent the market into a spin, but it also triggered a controversial reaction in Russia. Al-Monitor previously reported the ambiguity in positions between captains of the Russian oil business and the Kremlin.
Rosneft, Russia’s primary state-run oil company, has long lobbied for Russia to pull out of the deal, and Lukoil, Russia’s major private oil company, has been counting its losses.
