Post
Topic
Board Economics
Re: Pay in rubles or have your gas shut off by April
by
Sithara007
on 14/05/2022, 06:16:13 UTC
Ruble went down in valuation because of the restrictions imposed upon them and they can demand pay in their currency to balance that and since Russia have the upper hand because majority of the oil is imported to Europe they will be forced to comply as there is no other country that will be able to comply with the demand. If i remember correctly even OPEC rejected the proposal to increase production.

OPEC has production agreements with Russia and other non-OPEC oil producers. This severely limits their capability to increase the output. And it doesn't make any sense for the OPEC to bring down oil prices. Why should they agree to something that can reduce their revenue? Countries such as Saudi Arabia suffered a lot when crude oil was trading at $40 to $50 per barrel during 2014 - 2021. Now why should they let go this golden opportunity, which can reduce their budget deficit and external debt?