In their latest op-ed for The Hill, FDD’s deputy director of congressional relations Boris Zilberman and senior research analyst Varsha Koduvayur explain why a potential long-term pact extending cooperation with the Organization of the Petroleum Exporting Countries (OPEC) between Saudi Arabia and Russia does not threaten an abandonment of the strong Saudi-U.S. alliance – and why the agreement might actually benefit oil producers in the U.S.
An excerpt from the op-ed follows:
“Whether or not the arrangement holds will rest largely on Moscow’s willingness to give up its ability to manipulate oil policy in exchange for the stability of a long-term deal. Russia’s appetite for taking OPEC’s official policy stances, particularly when OPEC’s goals and Russia’s aims do not align, is evidently low. Russia has already expressed dissatisfaction at the length of the extension and would prefer to exit sooner. The utility of a rise in oil prices is limited for Moscow, which continues to suffer from a dampened environment for domestic investment, unless production volumes can be increased as well to boost revenues.”
Read the complete piece from The Hill here.
Boris Zilberman is deputy director of congressional relations at the Foundation for Defense of Democracies. Follow him on Twitter @rolltidebmz.
Varsha Koduvayur is a senior research analyst at the Foundation for Defense of Democracies, where she focuses on the Gulf. Follow her on Twitter @varshakoduvayur.
Follow FDD on Twitter @FDD. FDD is a Washington-based, nonpartisan research institute focusing on national security and foreign policy.