On Saturday, the 13th of April 2019, Russ Finance Minister Anton Siluanov said that the OPEC, a 14-nation pact of petroleum exporting nations and Russia might have decided to turn down their output cut policy and boost productions to battle with United States for more market share, a move which could pull oil price down to as low as $40 per barrel or below, a News Agency report reveled citing the Russian Financial Minister.
Citing the current situation as a double-edged sword, the Russian Finance Minister said at a conference in Washington, “There is a dilemma. What should we do with OPEC: should we lose the market, which is being occupied by the Americans, or quit the deal? (If the deal is abandoned) the oil prices will go down, then the new investments will shrink, American output will be lower, because the production cost for shale oil is higher than for traditional output”.
Never the less, earlier this year, officials from Roseneft, a Russian oil company headquartered in Moscow had forecasted that the oil price would likely to be coiling between $45-$55 per barrel this year, while an oil price below $40 could really hurt US shale production, as Shale oil production costs were more than conventional oil drilling.
Never the less, the Russian Finance Minister had also warned that the crude oil price could fall below $40 per barrel region, if Russia and OPEC decided to boost up crude production to fight for market shares.