Russia may be the only oil producer that can operate at a price of $ 15-20 per barrel, Bloomberg business agency writes, citing analysts at Bank of America and Raiffeisenbank.
According to experts, Moscow has several trump cards in the brewing oil war.
Analysts called the advantages of Russia low production cost, infrastructure development, a flexible tax system and ruble volatility.
In particular, we are talking about the fact that in Russia, producers receive part of their income in dollars, and spend in rubles.
“Thus, they can invest in production when their competitors are forced to reduce these costs,” says Bloomberg.
Disruption of the OPEC transaction +
Last week, OPEC + member countries did not agree to change the parameters of the transaction to reduce oil production or extend it.
So, due to the spread of a new type of coronavirus, Russia proposed to maintain the existing conditions, and Saudi Arabia – to further reduce oil production.
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