Saudi Arabia raised its main oil prices for buyers in Asia amid heightened volatility in the crude market as traders watch developments in the Middle East conflict.

Moscow will lack the funds to support its war economy if Saudi Arabia fulfils its plans to increase oil production to regain market share. Source: Politico Details: Saudi Arabia is increasingly frustrated by the failure of other oil-producing countries to coordinate supply cuts to raise oil prices to around US$100 per barrel (currently around US$70).

Russia is greatly reliant on oil and gas exports, which have represented almost one-third of the country's total federal revenue in 2023 and 42% in 2022. Fossil fuel profits thus play a key role in funding Russia's expensive war machine in Ukraine.

Russia risks facing a cash shortfall for its war economy if Saudi Arabia increases oil production. Riyadh is dissatisfied with the lack of coordination among countries to cut supply in order to raise prices from the current $70 to $100 per barrel,