Russian Diplomat Discussing the plan to subjugate OPEC and destroy USA PETRODOLLAR:
"The United States will lose its oil and gas industry, which generates $1.3 trillion a year and shapes 7.6% of American GDP. Finally, the collapse of OPEC, which served as the basis of the world system of the American petrodollar, will also benefit us[Russia]. It will be a new OPEC+, with new, Russian rules of the game, not American ones.
Friday, March 6th 2020, will go down in history as the day of the collapse of the global petrodollar system that has existed since 1960. At the OPEC+ meeting in Vienna, Russia refused to further participate in the production reduction program to stabilise the price of black gold.
Thus, the existing agreements will automatically cease after the expiration of the agreements on March 31st this year. From now on, each manufacturer will take care of itself.
Why this happened and what will happen in the near future is today one of the main economic, as well as geopolitical, issues. Understanding the answer requires some retrospective analysis of the reasons for OPEC’s alliance with Russia three years ago.
Most importantly, all of OPEC+’s efforts to cut US production are being used to build up its market share, with price implications in the long run.
Thus, the total supply will decrease via the American share of 12.45 million barrels per day, which is more than all the production of the Russian Federation. Plus, the supply from Canada, Venezuela, and a number of other countries will inevitably decrease.
In general, this step within two to three months can remove up to 9-10% of the total supply from the market, which accurately stabilises prices in the area that is sufficiently comfortable for us – $42-44 per barrel, if not higher.
Yes, this will reduce export revenues from the current $600-650 million per day to $430 million, but will protect the price from US influence and even allow Russia to increase production by 2-3% relative to current values.
From a strategic perspective, this decision means Russia’s rise to a completely new level of global influence. Now not only political, but also economic.
