Saudi Arabia is pushing for a new global oil output agreement with Russia and a consequent stabilization of prices. But while he’s open to such a deal, Vladimir Putin sees opportunity in playing hardball.
Oil prices have crashed amid a recent failure of Saudi and Russian officials to reach an agreement that would reduce the current global oil glut. In response, Saudi Arabia has increased its output, sending prices even lower. But under Trump administration pressure, the Saudis this week signaled a new openness to a deal with Russia that will stop the overproduction. Such a deal would entail Saudi and OPEC acceptance that Russia be allowed to sell more oil proportionally on global markets than other nations. That’s what Putin wants most: a deal that maximizes his oil revenue (absolutely critical to Russian government revenues) and ensures Russia’s political dominance of all the major non-U.S. energy producers.
