Oil War in The Pipeline

The author is an associate researcher with the Institute of World Economic Studies at the China Institutes of Contemporary International Relations

The 13-member Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, agreed with its allies, including Russia, on April 9 that they will cut output in May and June by 10 million barrels per day in principle, the largest ever production cut in history. The move temporarily eased a month-long tension between Saudi Arabia and Russia on lowering production and keeping prices stable, but its smooth implementation is still in doubt.

Negotiations over production cuts between OPEC and Russia broke down at their meeting in Vienna, Austria, on March 6. Russia rejected OPEC’s suggestion that exporters cut production by