Expert: OPEC+ Oil Cartel May Collapse By The End Of The Year

After that, Russia will lose the opportunity to make money from oil sales.

The OPEC+ oil cartel may collapse as early as 2025. After that, Russia will lose the opportunity to make money on oil sales.

This was told in an interview with NV by Mikhail Krutikhin, a Russian oil and gas market expert living in the EU. The eight OPEC+ countries, including Russia and Saudi Arabia, have decided to revise previous oil production plans and more than triple their output.

It is likely that Saudi Arabia realizes that there will be no more production cuts to hold down oil prices, and at this stage simply do not want to allow a sharp collapse of OPEC+, which could happen by the end of the year.

"The Saudis are acting carefully. They realize that there will be no more cuts, and each country will produce as much as it can. But in order not to displace Russia at once, for example, they set higher prices for Asia, where Russian oil goes, for May, so that the displacement would be gradual. Now their strategy is to destroy the cartel in parts, without rocking the boat," explained Krutikhin.

The collapse of OPEC+ will mean that each country that was part of it will supply the world market with as much oil as it can.

"And since many countries have lower production costs than Russia, it will be difficult for Russian oil to compete. There will be a lot of cheap oil on the market - from Iraq, Kuwait, Saudi Arabia, UAE, Brazil, Guyana. It will become extremely difficult to sell Russian oil at a profit," the expert believes.

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