Rare tacit cooperation! Saudi Arabia, Russia are said to be interested in pushing oil prices to the $100 mark

Sep 19, 2022

According to some foreign media reports, sources said that both the Saudi government and the Russian government believe that oil prices of $100 per barrel are a fair price.

Three government sources and analysts said recent signals suggested the two countries set their preferred price level for Brent at between $90 and $100 a barrel, significantly higher than previously expected by some OPEC+ watchers Around $75 a barrel.


Since these two countries are the main members of OPEC+, they can play a significant role in the global oil supply through the increase/cut policy. Therefore, they have considerable say in international oil pricing.


Another source with knowledge of Saudi Arabia said, “Oil prices at $120-$130 are risky, Saudi Arabia will stop that, but $100 won’t have a huge impact on the global economy. Saudi Arabia is also happy with that price.”


However, two sources familiar with the Russian industry said that this year Russia had to supply Asian buyers at a discounted price below the benchmark due to multiple rounds of sanctions from Western countries. They said the country preferred oil prices to be $100 a barrel higher to make up for the discount.


Media analysis emphasized that even if OPEC+ controls the price of oil at $90 per barrel, the United States and Europe are unacceptable. These countries may use methods such as dumping reserves and accelerating energy transformation to get rid of sellers' control over oil prices, which may become an international dispute that is difficult to reconcile.