Russian Message: Oil Price War With U.S. Would Be Too Costly

[ThunderBlade + 231]

According to Reuters agency, Russia should not unleash an oil price war against the United States but rather stick with output cuts even at the cost of losing market share in the medium term, one of the main Russian architects of a production pact with OPEC said. Since 2017, Russia and OPEC have cut oil production jointly for the first time in an effort to boost the price of crude. Following their supply pact, oil has traded between roughly $60 and $85 per barrel, from below $30 before the deal took effect.“For U.S. shale production to go down, you need oil prices at $40 per barrel and below. That is not healthy for the Russian economy,” Kirill Dmitriev, head of the state-backed Russian Direct Investment Fund, said on Wednesday. “We should not take competitive action to destroy U.S. shale production,” said Dmitriev, speaking at the World Economic Forum in Davos, Switzerland.

[50 shades of black + 254]

 

Explanation of experts:

This is why Russia budget have 43$ price in it? Everything above that (budget rule) goes into treasury reserves...

[pinto + 293]

From the stats I have seen, the U.S trailed both Saudi Arabia and Russia in oil production in 2014.  
2018 is the first time (in my lifetime) that the U.S is the worlds leading oil producer. You can see that from the IER and EIA...

[rainman + 263]

Nice. No blood for oil.

[Pavel + 384]

Step by step, Russian presence is intensifying: China, South America, Africa.. I found interesting facts about Russian influence in Africa

 

[TXPower + 643]

Surely Dmitriev’s statement is proof of Russian Collusion the left in America has so desperately been seeking.  Quid pro quo........  

Either way, WTI trading at around $65 a barrel would be better for me.

[ronwagn + 6,290]

5 hours ago, 50 shades of black said:

 

Explanation of experts:

This is why Russia budget have 43$ price in it? Everything above that (budget rule) goes into treasury reserves...

Russia cannot survive on $43.00 oil. That would put them at subsistence level IMHO. When will they help their people with their gold, if ever?

[ronwagn + 6,290]

5 hours ago, Pavel said:

Step by step, Russian presence is intensifying: China, South America, Africa.. I found interesting facts about Russian influence in Africa

 

I would like similar maps of all major countries investments in Africa. I think the Russians have a much better chance of establishing good relations, but little money compared to the Chinese who are not accepted well from what I have heard.

[ronwagn + 6,290]

Here are some interesting stories on what is going on in Africa.

https://www.africanexponent.com/post/9582-somalia-surrenders-africas-longest-coastline-to-china

https://www.africanexponent.com/post/9183-here-are-the-top-ten-countries-in-africa-bearing-the-largest-chinese-debt

https://www.africanexponent.com/post/billions-lost-in-profits-by-foreign-companies-tax-evasion-1953

Edited January 23, 2019 by ronwagn
added reference

[Meredith Poor + 883]

Russia is spending billions on various foreign adventures, largely paid for out of oil income. As this income diminishes, it will be necessary to focus on matters closer to home. Whether Russia engages in a 'price war' with US oil producers is more or less academic - US investors are seeking every last dollar of profit available from the oil fields, and they don't much care whether they're taking it out of the pocket of Saudis, Russians, or Norwegians.

Russia and Saudi Arabia need to diversify their economies, which means they need to reshape their political systems to encourage activity in the private sector. One can fix cars, sling hash, and build apartment blocks in politically repressive environments. It's another matter to create 'disruptors' that change how the world works. In that situation, people have to be able to ignore the authority figures and also have to be allowed to keep what they earn - even if it's a lot.

[Tom Kirkman + 8,860]

What a relief.  No need then for ear plugs, with the price war called off.  Safety First.

[A/Plague + 50]

17 hours ago, ronwagn said:

Russia cannot survive on $43.00 oil. That would put them at subsistence level IMHO. When will they help their people with their gold, if ever? 

Edited January 24, 2019 by A/Plague

[A/Plague + 50]

On 1/24/2019 at 11:08 AM, Tom Kirkman said:

What a relief.  No need then for ear plugs, with the price war called off.  Safety First.

 

Edited February 9, 2019 by A/Plague

[Rasmus Jorgensen + 1,169]

11 hours ago, ronwagn said:

I would like similar maps of all major countries investments in Africa. I think the Russians have a much better chance of establishing good relations, but little money compared to the Chinese who are not accepted well from what I have heard.

China are well liked by Africas offshore oil & gas industries. I have heard in infrastructure sector as well, but don't know for a fact. 

[ronwagn + 6,290]

Chinese are well liked by crony capitalists but not on the ground workers IMHO. The locals want to work and be treated fairly, the Chinese like to bring in their own workers and do not treat laborers well. That is what I have read anyway.

[Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas + 96]

On 1/23/2019 at 6:24 PM, ThunderBlade said:

According to Reuters agency, Russia should not unleash an oil price war ....

In my shit-hole country, an "oil price war" is what we call "free market capitalism".
Maybe instead of reading Marx, you should read the evil capitalist Adam Smith.
Good luck with that oil price war.  May your armies be victorious.

https://i.imgflip.com/2s6w8c.jpg