Surging oil prices are allowing Russia to generate more revenue to fund its war. It might be time for the West to step in.
The kingdom is trying to talk a fine balance – keeping oil prices high,even as it looks to tip-toe away from an oil-dependent future.
The OPEC+ oil cartel is showing signs of the tensions generated by a slump in prices in which Russia is playing a significant role.
Combined,the biggest Western oil companies are forecast to have made adjusted net income of $US36.5 billion ($54.6 billion) in the first quarter of 2023,according to data compiled by Bloomberg.
As Joe Biden looks on powerlessly,one of the biggest winners from the oil cartel’s power play is likely to be Vladimir Putin.
An unexpected move from the world’s leading oil cartel has driven up prices. If they stay high,pressure will build on a global economy that is already flirting with recession.
Russia has finally carried through with the threat to cut its oil production,hoping to drive up global oil prices in retaliation for the West’s sanctions. But how effective is that threat in a low-growth world economy?
The cap on the price of Russian oil has come into effect. The multi-billion dollar question and the course of the war in Ukraine now hinge on how effective it will be.
The outlook for the world economy is on a knife’s edge as Europe debates a price cap for Russian oil and OPEC considers production cuts.
Tensions are rising and speculation abounds in oil markets as the G7 nations,and Australia,prepare to impose a price cap on Russian oil. The consequences of it are uncertain.
The world is grappling with an energy crisis sparked by Russia’s invasion of Ukraine. But the International Energy Agency boss warns we may not have seen anything yet.