... lead one to take a sceptical view of the prospects for a Russian-Saudi energy partnership.
To begin with, the possibility of Russia working with OPEC as a whole is fairly low, since that organisation is beset by internal dissent. The primary line of confrontation lies between Saudi Arabia's position, advocating a freeze on oil production, and the plans by Iran and Iraq to increase output. It was the Saudis' unwillingness to agree a freeze unless Iran joined the agreement that
scuppered ...
... broad statements about the end of the era of high oil prices and the transition to fundamentally new types of energy.
This anxiety has chiefly been caused by the numerous unexpected events in July and August, which saw the lifting of sanctions against Iran, disappointment in the pace of growth in the Chinese economy, the situation in the Middle East, and OPEC member countries’ policy. Meanwhile, the oil price is a key factor determining the economic development of many countries, including Russia, where oil production and sale accounts for over
40 percent of revenues
to the federal budget, among other major exporters that are heavily reliant on oil.
The most likely scenario is this: over the short-term oil prices will continue to fall,...
