The world economy has once again demonstrated its unpredictability. The OPEC summit was expected to reach agreements on oil production and oil prices, but it failed. According to the expert, the key differences had emerged between Russia and Saudi Arabia. The markets reactedemotionally to this news. The world economy is already facing difficult times due to the coronavirus outbreak. As a result, the oil price per barrel fell from more than $50 to $30 or even lower. Now the price has been adjusted to $36, which is more in line with the world community's interests. "Domestic markets will survive this tense period and everything will be normal," Belyaev underscored.
Price wars in the oil trade could hardly be predicted, he added. But few people benefit from this either. The situation is definitely not in favor of Saudi Arabia. The Russian economy is still closely depends on oil prices, but this is no longer decisive. According to the Ministry of Finance, Moscow has enough currency reserves to cope with the lower oil prices (e.g. $30 per barrel) for 4 years . Entire Riyadh's economy is based on oil. "I think the economic situation will stabilize soon and we will see the full normalization of the market. Then probably the oil price will be in the range of $40 to $50 per barrel," RISS expert concluded.