Saudi-russian oil alliance marks a historic shift for OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is now a completely different organization in comparison to one founded 60 years ago. Not much has left from the sense of discipline and solidarity according to Albert Bininachvili, a professor of political science at the Columbia University.

“The important thing to recognize is that it also has a new identity that may reshape oil geopolitics for years to come.”

The new alliance between Saudi Arabia and Russia in managing world oil markets marks an important shift. Deepening and possibly formalizing the SaudiRussian oil alliance marks a potentially historic shift for OPEC, as the decision-making power is almost completely concentrated

in the hands of Riyadh and Moscow to the detriment of other members left with little or no say.

Formally not an OPEC member Moscow, nevertheless has a say in its decisions through the OPEC plus mechanism and actively influences the policy of this organization through coordination agreement it has with the OPEC’S leader Saudi Arabia. Russia also has willingness not to miss at any opportunity to challenge the US interests.

Russia is in a prime position to deliver the oil removed from markets because of US sanctions against Iran, which will result in development of cooperation between Moscow and countries important to American foreign policy. Thus, Russia will gain new leverage against the United States.