Head to head. Photographer: Andrey Rudakov/Bloomberg
As the oil price war continues, with the Saudis holding out and flooding the market with oil, the next logical stage is full-beyond-capacity storage facilities. It’s a situation that has some worried we could see oil drop below $10 a barrel.
Majority of experts are confident that the Saudis will not let this completely destroy the American shale patch, while the Russians are gunning for just that.
But what is happening here is that the oil price war is being compounded by the coronavirus and a near-global slowdown of activity, so we’re going to reach $15 oil a lot faster than we would otherwise.
The difficult part to predict will be the psychology of Mohammed bin Salman and Vladimir Putin - two very strong personalities who cannot back down without a clear, agreed-upon path that makes it look like they both won in different ways.