KHANTY-MANSI AUTONOMOUS AREA – YUGRA, RUSSIA – APRIL 25, 2020: A Surgutneftegas oil pumpjack in Surgut Region of the Khanty-Mansi Autonomous Area – Yugra, in West Siberian petroleum basin. Alexei Andronov/TASS Ðîññèÿ. Õàíòû-Ìàíñèéñêèé ÀÎ. Íåôòÿíàÿ êà÷àëêà. Äîáû÷à íåôòè íà Çàïàäíî-Ñóðãóòñêîì ìåñòîðîæäåíèè ÏÀÎ “Ñóðãóòíåôòåãàçà”. Àíäðîíîâ Àëåêñåé/ÒÀÑÑ

MOSCOW, May 20. /TASS/. The price war between Saudi Arabia and Russia on the global oil market may start again when prices return to the level of $50-55 a barrel, Department Director of S&P Global Ratings in Russia Alexander Gryaznov said on Wednesday.

“Some kind of a pause has been taken in this war. It is disadvantageous for both players, Saudi Arabia and Russia, to continue the price war in this situation,” the expert said. “However, when the price returns to $50-55 [per barrel], I would not exclude that the struggle for markets will continue,” he added.

According to S&P Global Ratings estimates, Brent oil prices will be at the level of $30 per barrel until 2020 year-end with subsequent recovery to $50 per barrel in 2021. Experts believe prices will be at the level of $55 per barrel in 2022 and later on.

Oil prices plummeted in March after Russia and Saudi Arabia failed to negotiate oil production cuts. Ex-allies intended to proactively ramp up production in April. Observes called it ‘the price war.”

However, OPEC+ countries managed to finalize the deal on oil production cuts in May – June at their extraordinary meeting on April 12.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Tesla launches fast electric car charging in Berlin, says more cities to come

BERLIN (Reuters) – Managers at electric carmaker Tesla Inc (TSLA.O) on Thursday demonstrated new supercharger equipment on a Berlin research campus, saying they were looking at more target cities to attract potential buyers worried about access to charging. “Now, as…

Fiat, Toyota, Renault latest to announce auto production halt in Brazil over coronavirus

SAO PAULO (Reuters) – Fiat Chrysler (FCAU.N), Toyota Motor Corp (7203.T) and Renault (RENA.PA) announced on Friday they will stop auto production in Brazil temporarily due to the coronavirus pandemic. Earlier this week, General Motors Co (GM.N) and Mercedes Benz…

Starbucks reports decline in Q4 results with signs of recovery

SAN FRANCISCO — Starbucks on Thursday reported financial results for its 13-week fiscal fourth quarter ending Sept 27, 2020, with the consolidated net revenues of $6.2 billion, down 8 percent from the prior year primarily due to lost sales related…

Carriers plan innovative measures to stay afloat

Chinese carriers are adopting various innovative measures to increase their revenue and stay afloat amid difficulties due to the COVID-19 epidemic. Shanghai-based China Eastern Airlines, known for its tasty in-flight meals, is planning to sell boxed food at chain supermarket…