Russia could gain $1 billion by cutting oil production; IMF warns of consequences of fragmentation of raw material markets

In the current situation, Russia and Saudi Arabia are in the most advantageous position.

Dầu Nga đến châu Phi tăng mạnh. (Nguồn: Oil Price)

Bloomberg estimates that Russia could receive up to $1 billion in windfall profits from the oil production cuts, which were announced in early September 2023 and then extended until the end of 2023. (Source: Oil Price)

On October 7, the IMF released a new database of the world's largest raw material producing countries.

Accordingly, Russia is in the top 3 in natural gas, oil, silicon, nickel, potash, tungsten, antimony, magnesium, wheat and sunflower seeds.

IMF economists also built a model in which they divided the world into two blocs: the first bloc led by China and Russia, and the second bloc led by the US and the European Union (EU).

This approach suggests growing geopolitical fragmentation between countries, which could undermine traditional trade relationships, as well as increase the cost of key minerals and agricultural crops.

The database shows that the greatest concentration of top producing countries is in the tungsten, rare earth and palm oil markets.

The IMF has previously warned that further fragmentation of raw material markets could lead to sharp price fluctuations and severely impact the economies of countries dependent on raw material imports.

In late September 2023, the US media noted that in the current situation, Russia and Saudi Arabia are in the most advantageous position.

Bloomberg economists estimate Russia could get as much as $1 billion in windfall profits from the oil production cuts, which were announced in early September 2023 and then extended until the end of 2023.

Source