According to cnbc.com on April 1, Edward bell, an analyst with Emirates NBD, said that without a diplomatic breakthrough, the oil price war between Saudi Arabia and Russia could last until the end of 2020.
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The failure of OPEC to reach an agreement led to a price war between Saudi Arabia and Russia in the global outbreak crisis, with oil prices plummeting more than 60% since the beginning of the year.
Brent crude oil futures in Asia fell 5.01 percent to $25.03 late Wednesday. US crude oil futures fell 1.03% to $20.27.
Bell told CNBC’s capital connect show that increasing production could help Saudi Arabia sustain its oil revenues in the face of low oil prices. If Russia, a non OPEC member, or OPEC member states decide to call for some form of production reduction, the oil market could resume its performance in the past few years.
He added that if Saudi Arabia wanted to expand its position as the world’s major oil supplier, it would cause “great pain” to marginal producers. “It will have to try to squeeze it out of the oil market as permanently as possible.”
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