Authored by Julianne Geiger via Oilprice.com,
OPEC and heavyweight Russia may fight America for its share of the oil market, Russia’s Finance Minister Anton Siluanov told TASS on Saturday, even if it means quitting the OPEC deal and lowered oil prices.
OPEC and Russia have tapered oil production according to the agreed upon production cut deal, but the United States continues to increase its production and is picking up market share in the process – market share formerly held by OPEC members and the other non-OPEC signatories to the deal including Russia.
Any failure in the production cut deal, however, will have a negative impact on prices, and could theoretically plunge prices into the $40 per barrel territory. This, in turn, would squeeze US oil producers and hurt new investments, Siluanov said.
“(If the deal is abandoned) the oil prices will go down, then the new investments will shrink, American output will be lower,…