Russia, Saudi Arabia Seek New Super-OPEC Oil Alliance – Reports from Sputnik News
TDC Note – As we pointed out just 3 days ago… and now we learn about a “super-OPEC”. WOW – that was quick!!
If you control both the price and the majority flow of any product you have complete control of that market. Oil is the most used commodity on the planet and it could be argued the most important strategic asset to any nation. If you are Russia, and dominant oil production, then you are in fact a key nation in any and all discussions where global trade is concerned. Let the flow of Russian oil dry up and let’s see what happens.
The new group might see large oil exporters such as Russia and Saudi Arabia play a bigger role. The news came following OPEC’s announcement that it would lift its oil production rate, tentatively boosting the daily oil supply to the market by a million barrels in the coming months.
Russia and Saudi Arabia have considered offering all the 24 members of the so-called OPEC+ deal a permanent body with its own constitution and secretariat, Bloomberg said on June 22, citing sources familiar with the matter.
The new group probably won’t stick to OPEC’s “one member, one vote” principle, which will likely give more weight in the body to large oil producers like Russia and Saudi Arabia.
A super-OPEC alliance might merely formalize current Russia-Saudi Arabia relations, Bloomberg claims, as the two countries have been working closely together on their oil and gas policy over the past two years.
The report came after OPEC had held a significant meeting in Vienna on Friday, with the oil cartel members agreeing to boost production by up to 1 million barrels a day. The move is expected to contain the recent rise in global energy prices.
