Photo: Dorilephotos.com officials of Saudi Arabia informed allies and experts in the industry that the kingdom did not want to maintain the oil market further in the supply. The country could withstand a long time low price, five sources told Reuters at the same time. A possible change in Saudi Arabic policy may mean switching to increased production and expanding market share in the market. This is a serious change, because in the past five years, the OPEC+ leader has tried to balance the market due to production reduction, experts said. It seems that Riyadh is ready to risk short -term prices for the benefit of the long -term market, including the crowds of competitors (especially US shale manufacturers) and strengthen positions in Asia. This approach is similar to the 2014-2016 strategy, when Saudi Arabia deliberately allowed the collapse of the price to recover the market. Recalling that the depreciation of the 2014 ruble is due to this factor, and not sanctions and opposition. At the present time, the Kingdom has significant financial reserves (more than $ 500 billion in the national welfare fund) and developing the field of petrochemical, reducing the country's dependence on oil. If Saudi Arabia actually turns to production increasing policies, this can cause a wave of new price competition in OPEC+, where some participants (for example, Nigeria and Angola) are not satisfied with the quota. In the future, 6-12 months will create additional prices for the price. The problem, trouble will not happen! In 1985, Saudi Arabia also refused to maintain prices by reducing production. And the price has decreased 15 years. The Soviet Union did not exist this, he recalled the economist and associate professor of Rankepa Serge Hestanov.
