Takshashila Strategic Assessment - India and the Saudi-Russia Oil Price War
Executive Summary
Global oil prices have fallen by about half since early March 2020. On one hand, the coronavirus pandemic is sweeping across the world, and on the other, the world is awash in oil because of the Saudi-Russia dispute over production cuts. This stand-off on oil production is deeply tied to the domestic political priorities and foreign policy objectives of both Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman. Both countries have benefited from low prices as they expand their market shares and drive global competitors out of business. Despite the many international consequences, the oil price war offers India a narrow window of opportunity to build up its strategic petroleum reserves and lock in long-term supply contracts at attractive rates.