Oil price war will be limited in duration, says Eurasia

KUALA LUMPUR: The current oil price war will be limited in duration and is largely motivated by Saudi Arabia’s effort to force Russia back into production restraint and to slow down new capacity growth in US shale and other non-Organisation of the Petroleum Exporting Countries (OPEC) sources.

Political risk consultancy Eurasia Group said with both Saudi Arabia and Russia digging in, the odds of a 12 month-price war or longer are increasing by 55 per cent, but there is still a good possibility of a renewed OPEC+ coordination in the next 12 months (45 per cent).