Translated by Ollie Richardson for Fort Russ
8th March, 2016
The emergence of a new oil cartel with Russia at the top can lead to a serious change in the balance of power in the world, writes the Internet resource OilPrice.com.
“If this scenario works, Russia would be the de facto leader amongst the major oil-producing countries, and will be responsible for 73% of the world’s supply,” — says the author.
According to the publication, Russia made a brilliant maneuver by taking the lead in forming a new oil cartel in the background of the current crisis in the sector.
The first step in its creation was the meeting of representatives from Russia, Qatar, Saudi Arabia, and Venezuela, held last month. Subsequent talks, in a wider context, will be held in mid-March.
If Russia and the OPEC countries can agree on a second meeting, Moscow will have strengthened its leadership position, writes OilPrice.com.
Before the crisis, the mood in the situation with oil prices was set by Saudi Arabia. However, after a sharp decline in prices the role of the Kingdom has declined markedly.
Now that Russia has taken over the reins in combating the oil crisis, the situation is quite different.
Riyadh, amid a sharp deterioration of relations with the United States, now needs a new ally who could protect the interests of the Saudis in the face of such threats as Islamic State and Iran.
“Despite the fact that Russia and Saudi Arabia support opposing sides in the Syrian conflict <…>, a sharp drop in the oil price seems to have made the union between them possible”, says OilPrice.com.
The portal reminds the reader that Moscow is currently actively working on abandoning the petrodollar — a deal with a number of countries on trade in national currencies has already been concluded. And if the new cartel of Russia and OPEC becomes a reality, the countries belonging to it can completely stop using the dollar in the near future.
“Moscow, in the situation of low oil prices, feels that there are opportunities that lie on the surface, and it looks like they are ready to use them in their favor. This will lead to the geopolitical landscape of the world geometrically progressing”, — notes the website.
Therefore, the March meeting should attract the attention of representatives of the oil sector around the world, as its outcome is more important than any agreement to reduce production or a glut in the market, concludes OilPrice.