With the increase in oil prices to the level of 50-55 dollars per barrel, a new round of price war may begin between Russia and Saudi Arabia.
At present, a pause has been taken in the confrontation, since further conflict is not beneficial to both parties, but the struggle for world markets is unlikely to stop there.
The rating agency expects the price of Brent to be around $30 per barrel by the end of the year, after which recovery to $50 in 2021. Further, oil, according to analysts, will gain a foothold at $55.
As of Thursday, May 21, the price of the Brent brand, from which Russian and Arab brands are calculated, has risen to a maximum since the beginning of March, reaching a peak of $36.6 per barrel. This situation is associated with a decrease in fears of overflowing storage facilities and stabilization of the US oil market.
Oil is growing after the entry into force of the OPEC + deal, in which 23 countries agreed to remove 9.7 million barrels per day from the market. The greatest obligations were undertaken by Russia and Saudi Arabia, and the kingdom since June promised to further reduce production by a million barrels per day.
The price war began after the parties could not agree on an agreement in this format in early March. Then Riyadh offered Europe, the traditional market for Russia, the record discounts for decades. This situation led to a drop in sales of Russian oil, however, in Saudi Arabia, the conflict led to serious budget problems, so from June the kingdom had to drastically reduce its discounts.