Saudi Arabia's potential move to abandon its $100 oil price target could significantly impact Russia's economy, primarily funded by oil reserves, as lower prices squeeze margins.
For Russia, this is the worst of both worlds. It has an oil-dependent economy benefiting from OPEC+ power, yet its costly extraction makes it vulnerable to low-price conditions.
With the prospect of cheap Saudi oil, Russia risks needing rapid military successes before an adversarial economic landscape sets in due to declining oil prices.
Russian oil extraction costs are considerably higher compared to Saudi Arabia and Iran, which could further strain Russia's financial capabilities in continuing its war efforts.
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