Russia opposes oil production cut

RUSSIA / FSU POLITICS - In Brief 13 Nov 2018 by Alex Teddy

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On 12 November President Putin announced that he does not want Russian consumers to be hurt by an oil price rise.On 11 November OPEC met in Abu Dhabi. There was a spirited debate about an oil production cut. The aim would be to raise prices. Iran and Saudi Arabia are both members of OPEC despite being nemeses. No agreement was reached about reducing oil production. The Saudis announced that they intend to cut production by half a million barrels in December and proposed a million barrels per day cut for early 2019. Ironically Iran also wishes to reduce production in order to raise the market price.With US sanctions on Iran kicking in the Iranian economy is due for a haircut. Saudi Arabia has deeper pockets so can better survive a fall in oil prices if one occurs. Russia has a cordial relationship with Iran. Russia is still abiding by the Joint Comprehensive Plan of Action (JCPOA) with regard to Iran. The so called ''Iran Deal'' was signed in 2015 to prevent Iran obtaining nuclear weapons. The Iranians and the Russians are four square behind the Syrian Government in its battle to annihilate ISIS. However, on the oil issue the Russian Government is prepared to see Iran take a serious hit. Moreover, in Syria it is said that the Russian military has not objected to Israelis destroying Russian's Iranian allies. Why is the Russian Government playing both sides of the street on Iran? President Putin and President Trump certainly have a personal rapport. John Bolton (US National Security Adviser) and Secretary of State Mike Pompeo both visited Moscow in recent weeks. Their entreaties to President Putin appear to have worked. While Russia has not pulled out of JCPOA they are no...