{"id":2383,"date":"2020-03-20T12:04:26","date_gmt":"2020-03-20T12:04:26","guid":{"rendered":"http:\/\/lonecandle.com\/?p=2383"},"modified":"2020-03-20T12:04:26","modified_gmt":"2020-03-20T12:04:26","slug":"the-saudi-arabia-russia-oil-war-explained","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=2383","title":{"rendered":"The Saudi Arabia-Russia oil war, explained"},"content":{"rendered":"\n

\n\n“three years ago<\/a> Russia made a deal to coordinate its production levels with the group, in a pact known as OPEC+.”
…
“Saudi Arabia, the cartel\u2019s leader, suggested the participants collectively cut their oil production by about 1 million barrels per day<\/a>, with Russia making the most dramatic cut of around 500,000 barrels a day<\/a>. Doing so would keep oil prices higher, which would bring in more revenue for nations in the bloc whose economies are heavily dependent on crude exports.” 
…
“Riyadh considered the move necessary as Asia<\/a>, which is roiling from thousands of cases of coronavirus mainly in China and South Korea, no longer consumes as much energy as it did only a few months ago. China\u2019s refineries, for example, cut their imports of foreign oil by about 20 percent<\/a> last month. Lower demand leads to a drop in the commodity\u2019s price, which thus hurts countries\u2019 bottom lines.
<\/p>\n\n\n\n

The Russians, wary of such a move for weeks<\/a>, opted against the plan. It\u2019s still unclear exactly why that\u2019s the case. Some say Russia wants prices to stay low to hurt the American shale oil industry<\/a> or is gearing up to seize a bigger <\/strong>sliver of Asian and global oil demand for itself.<\/p>\n\n\n\n

\u201cThe Russians are more worried about market share and think they\u2019d do better competing with the Saudis rather than cooperating at this point,\u201d says Emma Ashford, an expert on petrostates at the CATO Institute in Washington.Saudi Arabia didn\u2019t take too kindly to the Kremlin\u2019s decision and responded by slashing its export prices over the weekend to start a price war with Russia. That brought the price per barrel down by about $11<\/a> to $35 a barrel<\/a> \u2014 the biggest one-day drop since 1991<\/a>.”<\/p>\n\n\n\n

https:\/\/www.vox.com\/2020\/3\/9\/21171406\/coronavirus-saudi-arabia-russia-oil-war-explained<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“three years ago Russia made a deal to coordinate its production levels with the group, in a pact known as OPEC+.”<\/p>\n

…<\/p>\n

“Saudi Arabia, the cartel\u2019s leader, suggested the participants collectively cut their oil production by about 1 million barrels per day, with Russia making the most dramatic cut of around 500,000 barrels a day. Doing so would keep oil prices higher, which would bring in more revenue for nations in the bloc whose economies are heavily dependent on crude exports.” <\/p>\n

…<\/p>\n

“Riyadh considered the move necessary as Asia, which is roiling from thousands of cases of coronavirus mainly in China and South Korea, no longer consumes as much energy as it did only a few months ago. China\u2019s refineries, for example, cut their imports of foreign oil by about 20 percent last month. Lower demand leads to a drop in the commodity\u2019s price, which thus hurts countries\u2019 bottom lines.<\/p>\n

The Russians, wary of such a move for weeks, opted against the plan. It\u2019s still unclear exactly why that\u2019s the case. Some say Russia wants prices to stay low to hurt the American shale oil industry or is gearing up to seize a bigger sliver of Asian and global oil demand for itself.<\/p>\n

\u201cThe Russians are more worried about market share and think they\u2019d do better competing with the Saudis rather than cooperating at this point,\u201d says Emma Ashford, an expert on petrostates at the CATO Institute in Washington.<\/p>\n

Saudi Arabia didn\u2019t take too kindly to the Kremlin\u2019s decision and responded by slashing its export prices over the weekend to start a price war with Russia. That brought the price per barrel down by about $11 to $35 a barrel \u2014 the biggest one-day drop since 1991.”<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[579,580,576,578,577,384,315,575],"class_list":["post-2383","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-barrels","tag-market-share","tag-oil","tag-oil-price","tag-opec","tag-price","tag-russia","tag-saudi-arabia"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/2383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2383"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/2383\/revisions"}],"predecessor-version":[{"id":2384,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/2383\/revisions\/2384"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}