My Wikistrat webinar transcript “Oil Price War & COVID” from a couple weeks ago is now available on their website as a PDF. Issues discussed include:
- Why did Moscow declare the “war”? [Note: Putin & Sechin’s initial boasts Russia would hold out for “years”, kill shale & end sanctions all stopped in only a couple days!]
- The Saudi response was sharply focused against Russian oil-pipeline markets in W Europe (Druzhba) & Asia. [I believe this focused Mr. Putin’s attention on economic realities as opposed to Mr. Sechin’s anger-driven desire for revenge against US sanctions that had inflated his (self-)image of Rosneft and Russian oil-market prowess when up against a concerted Saudi counter-war, and the prospects of various US responses. Reports are that Putin spend three days on the phone to undo this fiasco and, in the end, had to accept significant cuts to Russian output. See my GlobalBarrel.com post of last week explaining the initial, flawed Russian strategy.]
- The options Trump had to choose from undermine his long antipathy to OPEC. (Did he secretly offer Putin any Nord Stream 2, Ukraine or Venezuela sanctions relief? If so, Congress won’t approve.) Also: Big Oil (American Petroleum Institute) and W. Texas/other independent producers are pulling at Trump in two very different policy directions re. OPEC, tariffs, production controls, etc
- And more (esp. in the Q&A): probable impact on carbon mitigation policies, the China market for LNG, US shale’s financial and production future, etc.