'Fed up' Saudi Arabia could scupper Russian 'aggression' in Ukraine with one move

'Fed up' Saudi Arabia could scupper Russian 'aggression' in Ukraine with one move

Saudi Arabia could play a pivotal role in hampering Russia's military operations in Ukraine by slashing the oil price, say experts. Riyadh is reportedly prepared to glut the oil market unless OPEC agrees to cut production.

The move by Mohammad bin Salman's nation could sink prices to around $48 per barrel, striking a heavy blow to Russia's financial resources. LSE research fellow Luke Cooper told IPS Journal: "With Russia already selling its oil at discounted rates and with higher production costs, a low-price environment in oil markets may impact its ability to finance its aggression in Ukraine."

Simon Henderson from The Washington Institute explained to Business Insider: "Saudi Arabia is fed up. Leadership of OPEC is a multifaceted responsibility. It can work well, but it's also like herding cats - pretty damn impossible, at least some of the time."

Overproduction of oil puts Russia in the OPEC spotlight, as they have exceeded their agreed quotas according to S&P Global Ratings.

Saudi Arabia might be looking to discipline Russia for flouting OPEC rules. Cooper suggests that Russia might intensify the Ukraine conflict in response to declining oil revenues to pressure Kyiv into negotiations, reports the Express.

Mr Cooper has posited a grim outlook for Russia's fiscal stamina amidst sinking oil values, contending that their costly extraction methods leave them ill-prepared for a market besieged by paltry prices. He elaborated: "Unlike Saudi Arabia, its oil is not cheap to extract, making it poorly equipped to deal with low-price conditions. This drives a short-term escalatory logic for Russia's war on Ukraine, requiring rapid battlefield successes prior to the emergence of low-price oil market conditions."