Russian scientist, doctor of economic Sciences Vladislav Inozemtsev gave his assessment of the latest developments in the oil market and the real situation in Russia.
It is reported by “Echo of Moscow”, reports “Hvil”.
On Friday, Russia has said it will not make a deal with OPEC+. Markets suspected that this might happen, but not quite believed in such a decision from the Kremlin. But in the Kremlin are determined people, and they went broke.
The market immediately reacted with the fall in prices, but not too significant. Three hours after the announcement of the position of Russia, the price of Brent fell by $2.1/barrel, or 4.5%.
However, the disaster happened the next day. On Sunday, Saudi Arabia said that in response to the Kremlin’s decision to reduce the price of $6-8 per barrel for deliveries of its oil to markets in Asia and Europe. In the end, on Monday, at the auction in Japan, the price of the most traded brands fell by more than a quarter.
If you do not take into account the financial side of the situation, happened unique to Putin’s Russia phenomenon. In the world for the first time there was a country that openly and harshly responded to Moscow’s actions.
Saudi Arabia – this is not Europe, trying to be kind to convince Putin not to fight with Georgia, Turkey and Ukraine. This time the Kremlin was faced with a country that has power and is ready to show it. Saudi Arabia struck in the weakest place at the wrong time.
Inozemtsev believes that in this case the Kremlin has a choice: “either continue to claim that he doesn’t care… or in a relatively short time to return to the negotiating table and sign a new agreement, “samoogranichitsja” in production is not something that is 500 million, and 1-1. 5 million barrels per day”
This is an economic war, which the Kremlin considered “easy”, but that can lead to catastrophic failure.