In 2020, the price of a barrel of oil will fluctuate between $40-45, which is very good for traditional oil exporters, including Russia and Saudi Arabia, and is very dangerous for the United States, the world's leading exporter of shale oil. Vahe Davtyan, an energy expert, said this in an interview with Armenian News-NEWS.am.
"We already now see a number of US shale oil companies have recently stopped operating," he said. “Russia was already sensing inconvenience in 2019 over the cut in oil production under the OPEC+ agreement, as the prospect of shale oil was opening up, which fits into the strategy Trump, who at the time declared the start of the "golden age of American energy dominance.
The US calculation was based on the growth of shale oil production, which now accounts for 20% of the world, ensuring Washington's lead. Naturally, Russia could not come to terms with this idea, as it brought in $50 billion a year to the States. However, this situation maintained until the price of oil fell around $40.
The current price is to some extent in favor of Russia and Saudi Arabia, which produce relatively cheap oil, and the main injured party is still Washington."
At the same time, the energy expert noted that after a 20-day decline and negotiations between the US president and the crown prince of Saudi Arabia, prices began to rise again, but which is likely to be short-lived, given the crisis. "Prices will fall again, and some stability can be expected towards the summer," Davtyan concluded.