Oil War between Saudi Arabia and Russia was started by a secret agreement between President Vladimir Putin and King Salman bin Abdulaziz Al Saud.
Russian political scientist Sergei Markov stated this during a conversation with members of the public movement “Donetsk Republic,” a PolitNavigator correspondent reports.
“This oil war, in the form in which it was in the form of Saudi Arabia’s aggressive disruption of the oil market, has ended, since agreements have been concluded, OPEC+, and so on.
All oil-producing countries benefited because they agreed that they would reduce production and thereby increase their income.
I read a lot about what Russia lost, won, and so on. My opinion is that Russia benefited from this in this situation. What was our dispute with Saudi Arabia? The Saudis said, "Let's reduce production." We said that in the current situation – the coronavirus and the economic crisis – we cannot do this. Because if we reduce production, then American shale producers will take away this niche of ours. Let us reduce it if the Americans join in this reduction.
The Saudis then started this war. Many believe that they started a war against Russia. Maybe you are right. But it seems to me that the Saudis started this war due to some secret agreement between the King of Saudi Arabia and Putin. Because in order to convince the United States to enter this concern, it was necessary to hit this shale oil. We cannot strike quickly because we cannot quickly increase this production.
And the Saudis could, but they could not do it for political reasons, because they are too dependent on the Americans. There was a cunning combination that formally the king of Saudi Arabia started that war against Russia, and pretended that we were at war with each other, but in fact it was an agreement between them - how to jointly hit the Americans and force them to join OPEC.
The Americans joined, and the new decrease was already taking into account this American accession,” he noted.
Sergei Markov emphasized that, although the United States did not formally join OPEC+, it “asked to take into account” a decrease in American oil production by 2 million barrels. For this reason, the winners in this oil war are Saudi Arabia and Russia.
“So I think this is a big victory for Putin, which essentially revolutionized the oil market in a way that brought in the Americans who had been against this cartel called OPEC for decades. And now they have abandoned the policy they have pursued for 40 years.
This is a real revolution, which may make the price of oil not formed in the markets, but more or less formed within the framework of this big cartel,” the political scientist added.