The Oil Price War of 2020
The Saudi-Russian relationship was tested during the oil price war of 2020. From 2016 to 2019 OPEC+ focused on stabilizing the oil market. Their strategy aimed to manage market expectations, eliminate excess supply, and compensate for shortages caused by accidents, without pushing prices above sustainable levels or encouraging competition through higher prices.
During the fall of 2019, the Saudis in OPEC+ started to advocate a return to the old policies, which meant giving up market share in the hopes that higher prices would compensate for volume loss. This change in policy was the result of changed leadership. In September…
