Russian President Vladimir Putin shakes hands with then Saudi Deputy Crown Prince Mohammed bin Salman during a meeting at the Kremlin on May 30, 2017 [Reuters/Pavel Golovkin]
Al Jazeera: Who runs OPEC? Russia, Saudi and the hunt for higher oil prices
Has the quest for higher oil prices forced Saudi Arabia to relinquish control of the cartel to Putin's Russia?
On the sidelines of the G20 summit in Japan, Saudi Arabia was successful in getting the Organization of the Petroleum Exporting Countries (OPEC) to extend oil production cuts until 2020.
But for Crown Prince Mohammed bin Salman (MBS), the price he paid may have been to sacrifice control of the oil cartel to Russia.
The Saudi economy needs oil prices around $80 a barrel to balance its budget. However, Russia only needs oil at $42 a barrel. This means Russia's rainy day fund has accumulated to $100bn from past production agreements.
So who is in OPEC's driver's seat, Saudi Arabia or Russia?
Read more ....
WNU Editor: The 3 countries that are the current driving forces in global oil prices are Russia, Saudi Arabia, and U.S. frackers. So as much as Saudi Arabia may want higher oil prices, market forces are telling everyone no.
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