The global economic downturn due to coronavirus and the breakup of OPEC+ has sent the ruble tumbling, which could give Russia an unexpected advantage in the oil price war.
While the ruble is now at its lowest level against the dollar in four years, the cheaper ruble has a silver lining for Russia’s oil producers in the oil price war for market share with Saudi Arabia. The collapse of the OPEC+ deal and oil prices has hit Russia’s financial markets and currency, leading to a sharp drop in the ruble versus the US dollar. The lower the ruble slides against the US dollar, the lower the production costs of Russian oil companies in US dollars are.
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