OPEC’s Epic Fail Will Hurt All Oil Producers, Even Russia
By letting talks collapse, Russia may be betting lower oil prices will stimulate demand, but that's not how things are likely to play out.
Happier Days
Photographer: Markus Zahradnik/OPECFriday’s gathering of oil ministers from the Organization of the Petroleum Exporting Countries and their international allies broke up in disarray. The collapse of talks reveals deep divisions over how to deal with the slump in oil demand triggered by the spread of the Covid-19 virus.
Saudi Arabia demanded that Russia share in a proposed reduction of a further 1.5 million barrels a day, insisting that OPEC wouldn’t reduce supply without the support of non-members. Russia demurred. Maybe Vladimir Putin just didn't like being told what to do by a 34-year-old prince who's run his country for about as many months and his older brother who's been energy minister for just half a year.