Russia’s hand: weaker than it seems
The devaluation of the rouble has been seen as insulating Russia during any sustained price war. But it may not be sitting as comfortably as thought
That Russia, and indeed Opec members, seriously underestimated the demand-side impact of Covid-19 when they walked away from the negotiating table in March and committed to unconstrained supply is beyond question. But the received wisdom that Russia—due to currency weakness better supporting its margins while the dollar price of oil falls—is better placed to weather a drawn-out battle of attrition may be less clear-cut. And it may influence Moscow’s negotiating position tomorrow. When it walked away last month, Moscow believed it had the coronavirus outbreak under control and hoped that the world—or at least the parts that generate the most oil demand—did too. It was wrong. Now Russian presi
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
