Russia and Ukraine flashpoint

[Bofferbrauer2]

Ryuu96 said:

❗️🇸🇦 Saudi Arabia, the largest OPEC oil producer, which has aimed to maintain high oil prices in recent years, has changed its strategy, — Bloomberg

❌ This is causing discontent in Russia, since price of its oil is already almost 40% lower than that included in the budget, but Moscow can do nothing.

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— MAKS 25 👀🇺🇦 (@maks23.bsky.social) 2 June 2025 at 16:36

Having stopped negotiating with partners, Saudi Arabia has switched to the language of ultimatums and for the third time in two months has provided a significant increase in production quotas.

— MAKS 25 👀🇺🇦 (@maks23.bsky.social) 2 June 2025 at 16:36

For context: Many of the OPEC+ nations cheated on their allocated quotas for years and pumped more oil than they should have, in some cases even much more. Saudi-Arabia was reducing it's own production numbers several times to keep prices high despite those cheaters, so Saudi-Arabia lost out and the other OPEC+ countries profited from their move.

Now they have enough and pump out more and more to punish these cheaters, basically telling them to fall in line or risk economic ruin.

As a side effect, US shale and fracking projects may face serious delays as the price drops below their point of profitability, so Drill, Baby Drill is delayed, baby, delayed.

Edit: Together with the European RePower EU project that would cut Russian oil and gas supplies completely and increased sanctions against Russian shadow tanker fleet, this would be a very serious blow to Russia's finances, forcing them to sell much less oil and gas at a mich lower price.

Last edited by Bofferbrauer2 - on 02 June 2025