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53

Disclaimer: I'm no expert, this answer is based on my modest understanding of the situation at play. The OPEC decision to cut oil production was meant to keep prices high: if every OPEC country were selling all the oil they could, it would drive prices down since there would be more supply than demand. So if every OPEC country agrees to sell only a limited ...


26

The reason Russia didn’t want to do a production cut is because the US is not participating in this, since the US is also not part of OPEC and actually leaves all the oil production to market forces and in the decisions of private businessmen rather than state-controlled oil like most of OPEC. While it's true that Russia needs a higher oil price for their ...


16

The head of Rosneft, Igor Sechin, has long been convinced that the OPEC deal "plays into the hands of the United States" by making its shale oil industry profitable. Allegedly he finally managed to convince Putin to decline the deal in order to drive the US oil producers out of business.


16

Short answer: Norway is a developed country. Longer answer: OPEC was developed as a way for under-developed economies with oil wealth to fight back against the power of multinational corporations mostly from Britain and the U.S. Norway didn't have that problem, and so wasn't really concerned with the same issues of OPEC. Later, OPEC became a way for ...


8

One other point not mentioned is Syria. With Russia and its allies gaining the upper hand over Saudi supported forces, this could be considered an opening up an economic front in that conflict.


3

To kill off American competition. US shale-oil fields are very costly to run. So if the oil price falls below certain level, US oil producers are making a loss. If the low prices persist for long enough, some of them might be incited to call it quits and shut the whole thing down. OPEC was trying to keep prices reasonably high, making profit for everyone -...


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