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The Saudis have recognized a high-profile defeat in the “price war” with Russia

Russia was ready for the consequences of withdrawing from OPEC +, but Saudi Arabia did not foresee this move, losing the battle.

Before the OPEC + emergency summit, experts from different countries build theories on how the parties will look for ways to solve the problem of overcoming the crisis. The Saudis were forced to admit a resounding defeat in the “price war” with Russia, and therefore are unlikely to continue to play it.

According to European expert Mamduh Salam, Riyadh will have to find a fair solution for all parties:

“Saudi Arabia, having convened an emergency OPEC + meeting under pressure from US President Donald Trump, admitted that she lost the price war in Russia.”

Salama noted that 90% of all Saudi budget revenues are provided by oil, and therefore a confrontation with Moscow will necessarily turn against Riyadh himself. At the same time, the Russian economy will calmly cope with the fall in oil prices. For Moscow, oil prices are acceptable even below $20 per barrel, but for Saudi Arabia, they should be at the level of 80-90 dollars at least.

“Moscow was ready for a scenario in which the price of oil under the influence of the termination of the OPEC + transaction would be at least $30 per barrel,” the expert explained.

Most likely, Riyadh will have to make concessions in the current situation and still continue cooperation with Moscow on the conditions that existed before the “price war”. So, the parties can come to an agreement at the upcoming meeting.

In fact, the Saudis have no other choice — either to suffer losses or to return to the previous rules of the game.

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