The oil negotiations will take place against the background of the football battles

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The match of two outsiders – the national teams of Russia and Saudi Arabia – the opening of the world football championship-2018, will be key for the global oil market, according to Bloomberg. The President of Russia Vladimir Putin and crown Prince of Saudi Arabia Mohammed bin Salman together to watch the game of their teams on June 14 in “Luzhniki”. The fact that the match will take place just eight days before a crucial meeting of OPEC in Vienna. The meeting between the two leaders might help to bridge the gap countries to increase oil production.
In fact, however, the perspective of the global leaders in the oil sector close. Russia’s position is known – the gradual increase of production under the agreement, OPEC+ can start with the third quarter of this year. The Saudis believe that in the second half of this year, OPEC and Russia can increase oil deliveries to the world market to compensate for the loss of Venezuelan oil and the impact of U.S. sanctions on Iran.
Oil, of course, this year has pleased all exporters, however, for a balanced budget the Saudis need a more expensive oil than Russia. Do not forget that the middle East oil workers are planning a forthcoming IPO, which, of course, will seriously affect the capitalization of Russian oil and gas companies, especially the largest – “Gazprom” and “Rosneft”. Russia is not formally a member of OPEC. However, after military success in Syria is a major player in the greater middle East.
With high probability it can be argued that the arrival of the crown Prince of the UAE Mohammed bin Zayed al Nahyan to Russia and the signing of documents on military issues is another important step in the strategy of the Kremlin on oil and the near East. Russia exports not just oil and gas, but also the weapons that are usually much cheaper than the us.
We continue to orientirueshsya the cost of a barrel of Brent in the range $75-$85, with a weak ruble is a boon for Russian exporters and the budget.
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Alexander Razuvayev,
The Director of analytical Department,
Alpari