A month after the last unproductive OPEC+ meeting and with Covid-19
slashing demand amid the ongoing price war, the US has managed to broker
a new extraordinary meeting for oil-producing nations. Russia and Saudi
Arabia will be back to the negotiating tele-table on 6 April 2020 to
discuss the output cuts of at least 10 million barrels per day (bpd),
first announced by US President Donald Trump on Twitter on 2 April 2020.
The deal would help balance the demand shortfall and bring prices
back to more profitable levels and help avoid production shut-ins. The
sticking point is how much each producer is willing to cut. But, in case
of another deadlock between Russia and Saudi Arabia, which of the two
oil majors is better positioned to withstand an extended oil price war
with fewer losses?
A Rystad Energy research shows that Saudi Arabia will suffer a bigger
hit than Russia in all five financial criteria we examine: the impact
on oil and gas revenues, fiscal breakeven price, fiscal deficit and
foreign currency reserves, budget deficits and domestic policy.
https://www.rystadenergy.com/newsevents/news/press-releases/opec-poker-game-on-monday-russia-holds-better-cards-than-saudi-arabia/
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