The West is wary of President Putin's 'new friend'

Ria Novosti quoted an analysis in the National Interest newspaper saying that at a time when the world is trying to cope with strong inflation, rising living costs, the consequences of the military conflict in Ukraine, and now the crisis in Israel, Brent oil prices have increased by 30-40% since July. This has led to serious economic, social and political consequences. The price of each barrel is gradually approaching the level of 100 USD/barrel.

What is the reason for this price increase?

Two oil-producing countries with opposing political views have the potential to influence oil prices. They are Russia and Saudi Arabia. While Saudi Arabia is an ally of the United States, Russia is Washington's opponent. However, within the Organization of the Petroleum Exporting Countries (OPEC+), Russia and Saudi Arabia are "joining hands" to cut oil production. Saudi Arabia has cut oil production by nearly 2 million barrels per day, and Russia by about half a million barrels per day. These moves have caused a shortage of supply on the global market.

The National Interest newspaper said that both countries are motivated by the desire to earn more profits. However, besides that, the "handshake" between Russia and Saudi Arabia also shows discord with the US.

Furthermore, Saudi Arabia’s Crown Prince Mohammed bin Salman is actively diversifying his country’s foreign policy. He does not want to completely destroy the special relationship with the United States, as Washington is Riyadh’s security guarantor in the region. In addition, Mohammed bin Salman is looking to strengthen relations with China and Russia. Riyadh has also received an invitation to join BRICS and wants to join the Shanghai Cooperation Organization.

The Crown Prince also has a good personal relationship with President Vladimir Putin. Meanwhile, the Russian leader attaches great importance to cooperation with Saudi Arabia, considering it the largest and most influential oil producer in OPEC+.

“As long as the interests of Russia and Saudi Arabia are aligned, oil prices are unlikely to fall in the near future. So consumers will face difficult times ahead,” Amin Saikal, Emeritus Professor at the Australian National University, told the National Interest.