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Why OPEC's decision means Russia will suffer the most
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Russia is the biggest loser after the decision by OPEC to maintain supply at 30 million barrels per day, according to Russia oil and gas expert Nadia Kazakova. Many conspiracy theories swirled around the OPEC conference this week, one being that Saudi Arabia was eyeing up Russia's market share. Weakened by sanctions and with the Ruble at new lows, USDRUB rose 8% this week, the Russians have also claimed losses of 100 Billion USD in revenues since oil prices began to fall in June.
The investment landscape in Russia is now even more toxic for Western investors and that includes global oil firms which have seen their ability to sign contracts curtailed by sanctions. If Russia's oil production is harmed by sanctions as well as low oil prices then the Russian share of the market is up for grabs and the Saudis look well set to step in.