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53 votes
Accepted

Why has Russia declined OPEC's request to cut oil production?

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 ...
Erwan's user avatar
  • 17.9k
25 votes

Why has Russia declined OPEC's request to cut oil production?

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 ...
Boris Dzhelali's user avatar
18 votes
Accepted

Why isn't Norway a part of OPEC?

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 ...
The Pompitous of Love's user avatar
15 votes

Why has Russia declined OPEC's request to cut oil production?

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 ...
Dmitry Grigoryev's user avatar
8 votes

Why has Russia declined OPEC's request to cut oil production?

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.
James's user avatar
  • 181
7 votes

Why did Saudi Arabia refuse to increase oil production to counter Russia when USA asked them to in February 2022?

Profits. As was demonstrated by the 2020 Russia–Saudi Arabia oil price war, a signficant production increase would lead to a market crash, and require significant corrections by all producers to ...
Danila Smirnov's user avatar
6 votes

Objective arguments to support assertions that Saudi Arabia is "siding with Russia" and not simply just exercising sound fiscal policy?

While the "oil price cap" for Russia is applied just as a sanction, and (from the view point of Ukraine) seems fair this way, other oil producers may have concerns that upon success this cap ...
Stančikas's user avatar
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5 votes

Why is the US asking OPEC about prices?

Imagine a free market with different consumers, who all have different limits of how much they are prepared to pay before they consume less or look for an alternative, and different producers, with ...
o.m.'s user avatar
  • 111k
3 votes

Why has Russia declined OPEC's request to cut oil production?

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 ...
Agent_L's user avatar
  • 1,110
3 votes
Accepted

Why is the US asking OPEC about prices?

The answer to this question is related to the cost of production: indeed the US is self-sufficient, but most of the oil production in the US is now shale oil. In average shale oil has a higher cost of ...
Erwan's user avatar
  • 17.9k
3 votes

Why did Saudi Arabia refuse to increase oil production to counter Russia when USA asked them to in February 2022?

Selling oil at higher price One possible reason is that Saudi Arabia might benefit more from higher oil prices - the demand for oil is pretty inelastic, in the sense that the price would have to go ...
Morisco's user avatar
  • 24.5k
3 votes

Did Saudi Arabia cut in half its oil & gas share of GDP from 2020 to 2022?

To partially answer my Q, GASTAT (the Saudi Statistics Agency) does have time series data for their GDP since 1970, and they've pretty much always reported on the same breakdown with crude and ...
got trolled too much this week's user avatar
2 votes

Objective arguments to support assertions that Saudi Arabia is "siding with Russia" and not simply just exercising sound fiscal policy?

You could look the 2020 price war they had with Russia: not exactly great alignment. But you can look at MSB's snub of Biden earlier in the war, when he supposedly did not pick up the phone makes one ...
Italian Philosophers 4 Monica's user avatar
1 vote

Why did Saudi Arabia refuse to increase oil production to counter Russia when USA asked them to in February 2022?

In addition to increased profits, another reason why Saudi Arabia didn't increase oil production when asked was it wanted support for its war in Yemen.
Fred's user avatar
  • 955

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