Editing OPEC (section)

===2020: Saudi-Russian price war===
{{main|2020 Russia–Saudi Arabia oil price war}}
In early March 2020, OPEC officials presented an ultimatum to Russia to cut production by 1.5% of world supply. Russia, which foresaw continuing cuts as American [[shale oil]] production increased, rejected the demand, ending the three-year partnership between OPEC and major non-OPEC providers.<ref name=NYT_9March2020>{{cite news|last=Reed |first=Stanley|title=How a Saudi-Russian Standoff Sent Oil Markets into a Frenzy |url=https://www.nytimes.com/2020/03/09/business/energy-environment/oil-opec-saudi-russia.html |archive-url=https://web.archive.org/web/20200309181006/https://www.nytimes.com/2020/03/09/business/energy-environment/oil-opec-saudi-russia.html |archive-date=9 March 2020 |url-access=subscription |url-status=live|newspaper=[[The New York Times]]|access-date=9 March 2020 |date=9 March 2020}}</ref> Another factor was [[Economic impact of the COVID-19 pandemic|weakening global demand]] resulting from the [[COVID-19 pandemic]].<ref>{{cite news |last1=Mufson |first1=Steven |last2=Englund |first2=Will|author2-link=Will Englund|title=Oil price war threatens widespread collateral damage |url=https://www.washingtonpost.com/climate-environment/oil-price-war-threatens-widespread-collateral-damage/2020/03/09/3e42c9e2-6207-11ea-acca-80c22bbee96f_story.html |newspaper=[[The Washington Post]]|access-date=9 March 2020}}</ref> This also resulted in 'OPEC plus' failing to extend the agreement cutting 2.1&nbsp;million barrels per day that was set to expire at the end of March. Saudi Arabia, which has absorbed a disproportionate amount of the cuts to convince Russia to stay in the agreement, notified its buyers on 7 March that they would raise output and discount their oil in April. This prompted a Brent crude price crash of more than 30% before a slight recovery and [[Black Monday (2020)|widespread turmoil in financial markets]].<ref name=NYT_9March2020/>

Several pundits saw this as a [[2020 Russia–Saudi Arabia oil price war|Saudi-Russian price war]], or [[game of chicken]] which cause the "other side to blink first".<ref name="ergm">{{cite news |last1=Reguly |first1=Eric |title=Who will win the Saudi-Russia game of chicken in the new oil war? Russia's chances look good |url=https://www.theglobeandmail.com/business/commentary/article-who-will-win-the-saudi-russia-game-of-chicken-in-the-new-oil-war/ |publisher=The Globe and Mail Inc |date=10 March 2020}}</ref><ref name="trdt">{{cite news |last1=Rees |first1=Tom |title=Russia and Saudi Arabia wait for the other side to blink first in the oil price war |url=https://www.telegraph.co.uk/business/2020/03/10/russia-saudi-arabia-wait-side-blink-first-oil-price-war/?li_source=LI&li_medium=li-recommendation-widget |agency=The Daily Telegraph |publisher=Telegraph Media Group Limited |date=10 March 2020}}</ref><ref name="ptfp">{{cite news |last1=Tertzakian |first1=Peter |date=9 March 2020 |title=This crude war is about a lot more than oil prices and market share |url=https://business.financialpost.com/commodities/energy/peter-tertzakian-this-crude-war-is-about-a-lot-more-than-oil-prices-and-market-share |access-date=23 May 2024 |work=Financial Post |agency=Postmedia}}</ref> Saudi Arabia had in March 2020 $500&nbsp;billion of foreign exchange reserves, while at that time Russia's reserves were $580&nbsp;billion. The [[debt-to-GDP ratio]] of the Saudis was 25%, while the Russian ratio was 15%.<ref name=ergm/> Another remarked that the Saudis can produce oil at as low a price as $3 per barrel, whereas Russia needs $30 per barrel to cover production costs.<ref name="npfp">{{cite news |last1=Powell |first1=Naomi |date=9 March 2020 |title='Game of chicken': Saudis, Russians can wage an oil war for a long time – but at huge political cost |work=Financial Post |agency=Postmedia |url=https://business.financialpost.com/commodities/game-of-chicken-the-saudis-and-russians-can-wage-an-oil-war-for-a-long-time-but-at-a-huge-political-cost?video_autoplay=true}}</ref> "To Russia, this price war is more than just about regaining market share for oil," one analyst claims. "It’s about assaulting the Western economy, especially America’s."<ref name="ptfp" /> In order to ward off the oil exporters price war which can make shale oil production uneconomical, US may protect its crude oil market share by passing the [[NOPEC]] bill.<ref>{{cite news |last=Watkins |first=Simon |date=Mar 22, 2020 |title=Trump's Ultimate Weapon To End The Oil War |url=https://oilprice.com/Energy/Crude-Oil/Trumps-Ultimate-Weapon-To-End-The-Oil-War.html |access-date=23 March 2020}}</ref> Meanwhile, Saudi Arabia, represented by Energy Minister Prince Abdulaziz bin Salman, maintains a conciliatory stance towards the U.S. shale industry. He clarified that harming this sector was never their intention, stating, "I made it clear that it was not on our radar or our intention to create any type of damage to their industry... they will rise again from the ashes and thrive and prosper." He also noted that Saudi Arabia is looking forward to a time when U.S. producers thrive once again in a market with higher oil demand."<ref>{{Cite web |last=Paraskova |first=Tsvetana |date=Apr 14, 2020 |title=Saudi Arabia Claims The U.S. Was Not Their Target In The Oil War |url=https://oilprice.com/Energy/Crude-Oil/Saudi-Arabia-Claims-The-US-Was-Not-Their-Target-In-The-Oil-War.html |access-date=2024-05-23 |website=OilPrice.com |language=en}}</ref>

In April 2020, OPEC and a group of other oil producers, including Russia, agreed to extend production cuts until the end of July. The cartel and its allies agreed to cut oil production in May and June by 9.7 million barrels a day, equal to around 10% of global output, in an effort to prop up prices, which had previously [[2020 Russia–Saudi Arabia oil price war|fallen to record lows]].<ref>{{cite news |title=From The Economist Espresso: Minneapolis to disband its police force; New Zealand eliminates covid-19|url=https://espresso.economist.com/48e61db7215cd565c9976a40b7d3d1d5}}</ref>