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Will one of the consequences of the pandemic be the end of OPEC?

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Giant oil tankers have changed into floating warehouses for oil following the sharp drop in the price per barrel. The dispute between Russia and Saudi Arabia has led to the biggest drop since 2002. It seems that US President Donald Trump’s call to Saudi’s Crown Prince Mohammad Bin Salman, asking him to end the price war and restore the agreement with Russia has worked, though. This phone call was followed by Trump’s threat to impose major fines if the prices remain as they are now. In doing so, he basically confirmed that America does not need oil from foreign producers.

However, the restored partnership between Russia and Saudi Arabia in the context of OPEC is still failing, despite US mediation and the ending of the row between Moscow and Riyadh over who is responsible for low oil prices and their mutual recognition that this harms all parties. The OPEC meeting scheduled for last Monday will now be held tomorrow. According to some analysts, the postponement was due to miscommunication and a lack of understanding. Others believe that the delay is to allow further contemplation and........

© Middle East Monitor