Sub-$30 Brent looming on Opec+ tension
Wide differences in strategy, breakeven prices and national finances all contributed to failure to agree production cuts in face of US shale competition and sagging demand
Brent crude prices could decline further to less than $30/bl if the differences between Saudi Arabia and Russia cannot be overcome, experts warn. In the absence of a reversion to cooperation, many observers expect Saudi Arabia to ramp up output to 11mn bl/d—despite huge political tension in the country’s ruling elite. The two countries have hardened their positions since their alliance of more than three years collapsed on Friday with Riyadh announcing over the weekend that it would cut its export prices by up to $8/bl for some customers and ramp up production. Not only did Opec and Russia fail to negotiate a fresh output cut of 1.5mn bl/d on Friday, but existing cuts of 1.7mn bl/d expire a
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