Russian-Saudi Oil Cooperation Won’t Last
They say they will cut production. But it’s in the interests of both big oil producers to pump as much as they can.
Friends for now.
Photographer: Amilcar Orfali/Getty Images South AmericaThere’s a nasty undercurrent to the surprisingly strong Saudi-Russian oil alliance behind the upcoming oil production cuts (or, rather, the latest coordinated verbal intervention to drive up the price of oil). Saudi Crown Prince Mohammed bin Salman may high-five Russian President Vladimir Putin in public, but he makes no secret of his expectation that Russia will disappear from the oil market in less than 20 years.
That the cooperation is openly tactical rather than strategic is important for the oil market’s future. Eventually, perhaps soon, the two big exporters may not be interested in production-cutting deals as they square off for important markets and seek to keep the U.S. out of them.