Putin’s war economy faces pain if Saudis sink global oil prices

Source: Horsepankake

8 Comments

  1. Summary:

    Saudi Arabia is frustrated with oil-producing countries like Russia, which have failed to cut production as agreed to raise oil prices. In response, Saudi Arabia is considering increasing its own oil exports, potentially lowering global prices. This move could severely impact Russia, which relies heavily on oil revenues to fund its war in Ukraine.

    If oil prices drop by $20 per barrel, Russia could lose $20 billion in revenue, equivalent to 1% of its GDP. The Kremlin faces tough choices: reduce spending or deal with inflation and high interest rates. Despite Western sanctions and price caps, Russia has managed to profit through alternative markets and middlemen countries like China and India. Even if Saudi Arabia follows through with its plan, Russia is expected to continue funding its war for now, though its economy shows signs of strain.

  2. War in the middle east and we’re speculating a *drop* in oil prices? I don’t like the odds on that put tbh.

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