With neither Saudi Arabia nor Russia appearing willing to back down, the newly declared price war could drag to very low levels for a very long time, an RS Energy Group expert said during a March 12 webinar.
Bill Farren-Price, London-based director of international energy policy and geopolitical research, said it is highly likely “Russia may never return to any sort of supportive and cooperative role with OPEC,” adding that he doesn’t see the price war ending anytime soon. “It may be possible that Saudi Arabia and its Gulf allies are buckling in for periods of oil prices as low as $20 Brent for the next six to nine months.”
Global oil markets spiraled downward last week following the collapse of production negotiations. The damage continued on March 16, with Brent diving a further 11% to just above $30 per barrel (bbl) and WTI falling to about $29/bbl by mid-morning.