OPEC and Russia, known as OPEC+, have worked together to maintain high oil prices. Saudi Arabia’s Vision 2030 aims to diversify its economy from oil dependence, while Russia relies on oil revenues for a third of its general revenue, including funding the war in Ukraine.

Both OPEC and Russia targeted Brent prices in the $80’s, but global supply cuts and pressure from the Trump administration led to increasing global inventories, dropping Brent prices from $80 to the mid-$60’s. Predictions suggest prices may fall to the $50’s in the new year.

Russian oil production faces challenges due to global sanctions post-Ukraine invasion. Aging production hubs and sanctions have limited Russia’s ability to tap into shale reserves. Lack of technology and field crews make replicating U.S. shale production unlikely for Russia.

Sanctions have prevented Russia from accessing Western technology needed for successful shale production. Lack of AI software, trained field crews, and equipment assets hinder Russian shale development. The decline in legacy conventional reservoirs and inability to exploit shale reserves could lead to a 20% drop in production by 2030.

As global energy demand increases, Russian supply decline could impact global energy needs. Estimates vary on future demand, but a potential 20% drop in Russian production could affect energy markets. The uncertainty of Russian oil production poses challenges in meeting global energy demands.

Read more at Yahoo Finance: The Slow Demise of Russian Oil Production