Another “long con” of the Russian President fails.
Incompetence, rigidity, and sometimes even outright stupidity of Russian government officials jeopardizes the welfare of the people for generations to come. That’s why it becomes very bitter when the next “mnogohodovki” Vladimir Putin is failing.
In early March, 2020 Vladimir Putin has refused to cut production on 300 — 400 thousand barrels a day and decided to pull out of the deal, OPEC+. He planned nothing less than to win and Saudi Arabia, and Gulf countries, as well as shale oil producers of US all together. Russian propagandists tirelessly repeated, Putin’s actions have a strategic calculation, the essence of which we can not know.
But the slogans, stories and propaganda euphoria quickly evaporated as soon as the price of Russian oil Urals oil fell to$ 10 per barrel, with 42$ per barrel, in the budget of Russia. And all because the economy is so-called “Putinism” exchange rate without replenishment from commodity exports is beginning to crumble on the eyes.
Vladimir Putin, in turn, began to promote the idea of partnership and cooperation with the countries of the OPEC+ and the United States: “I Believe that it is necessary to combine efforts to balance the market and reduce the result of these coordinated efforts, coordinated action production”.
And here on April 9 OPEC+, with the full support of Vladimir Putin, decided to cut production in the period may-June, roughly 10 million barrels per day.
About this “ANOTHER VICTORY” of Vladimir Putin very modestly tells the Russian media, and all because she once again proves how incompetent the leadership of Russia.
If we consider the pre-transaction structure of OPEC+, it is impossible not to notice that Russia was in a situation of global loss. It’s pretty simple,, our country will reduce the volume of production approximately 2.5-2.7 million barrels per day when the price of Brent crude oil at$ 30 per barrel. But we remember that Vladimir Putin refused to cut production by 300-400 thousand barrels per day when the price of Brent crude to$ 60 a barrel.
Of course, such production cuts will further reduce the Russian share of the world market of oil. It is also important to note, this all occurs in circumstances when the Asian and European markets, the demand for the Russian grade of oil Urals grades Sokol and fell to lows, traders for weeks could not sell a single barrel. As of March 31, spot prices for gas in Europe fell below the level of domestic prices.
Such is Vladimir Putin’s victory in the oil war.
Ivan Chumakov, “Echo Of Moscow”