Saudi Arabia, by far OPEC’s biggest producer, is unlikely to agree to cut its own output enough to reverse the decline in global prices. It has large reserve funds that allow it to withstand long periods of lower prices. And it may have geopolitical reasons to keep prices subdued, at least for now. “The geopolitical pressure between Saudi Arabia and Russia is so great that it probably motivates Saudi Arabia to let the price fall,” says Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis.
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