Saudi Arabia Makes Risky Production Cut, Causing Strain in Oil Partnership with Russia

Saudi Arabia’s recent decision to cut oil production has caused tension in its partnership with Russia, according to a report by The New York Times. The move was intended to increase oil prices, as the COVID-19 pandemic has caused a decrease in demand. However, the cut has not had the desired effect, as CBS News reports that oil prices actually fell following the announcement.

Saudi Energy Minister Abdulaziz bin Salman had previously warned that short-sellers would feel “pain” as a result of the production cut. But critics, such as The Japan Times, have called the move a “risky strategy” for Saudi Arabia to take on alone.

The decision has put even more pressure on the already-strained partnership between Saudi Arabia and Russia, which began a joint production cut in 2019. Some experts have speculated that the two countries may be shifting away from their partnership altogether, as tensions rise over the fluctuating oil market.

Observers will continue to watch the situation closely as Saudi Arabia’s oil production strategy evolves over the coming weeks.