Saudi coalition oil war with Russia
ISWNews Analysis Group: Following the oil ear between Saudi Arabia and Russia, UAE increased its oil production.
The war started after OPEC and Russia talks regarding oil production reduction failed. Russia rejected Saudi offer to decrease oil production to control the prices. The oil price already plunged due to Coronavirus breakout in China.
Thus, Saudi following its mysterious activities, increased its oil production from 12 million BPD to 13 million BPD.
Saudi is giving discount to Russian oil customers in north of Europe between 8 to 10.25 dollar per barrel if they buy oil from it.
Supporting Saudis, UAE said it’s ready to increase its oil production to 4 million BPD.
These acts target Russia directly will bump its economy severely and will result in Russia’s reaction which is hard to predict what it would be. However, with more than 500 billion dollar foreign exchange reserve Russian government is not very concerned but there is possibility of military or political reaction against Saudi coalition.