"Russian President Vladimir Putin has to put his shirt back on and stop acting like a thug"

Fadel Gheit

Said : Fadel Gheit, senior energy analyst at Oppenheimer in an analysis of OPEC's oil battle and to opine on how long Saudi Arabia can withstand low oil prices. His comments were published in CNBC Executive News Editor Patti Domm's post titled : "Oil battle is sticky, but OPEC may be forced to act." 

According to Fadel Gheit the Saudis could take low prices for more than a year. But other countries, like Iran, Venezuela and Russia, will be increasingly impacted, reported Patti.

Patti notes that Russia is feeling the pinch of sanctions and has lost the assistance of Western drillers. Saudi Arabia sees $60 as the level where prices will stabilize, after OPEC's decision not to cut its production. According to her "the U.S. shale industry is relatively new, and some analysts say it really is not clear what the impact will be."

"It's a threshold of pain. Saudi Arabia has enough money and is applying pressure on Iran. They have to bring Iran to its knees to bring it to the negotiating table, … and (Russian President Vladimir) Putin has to put his shirt back on and stop acting like a thug," Patti quoted Fadel Gheit saying in her article. 

Oppenheimer's Fadel Gheit on oil's next move

Putti also noted that the OPEC gathering was just days after negotiations between Iran, the U.S. and five other nations on Iran's nuclear program were extended after failing to reach an agreement by the Nov. 24 deadline.

The OPEC Secretariat in Vienna

It is worth mentioning here that the Organization of the Petroleum Exporting Countries (OPEC) in it's 166th meeting, last month, decided to maintain the production level of 30.0 mb/d, as was agreed in December 2011 ruling out any production cut "in the interest of restoring market equilibrium."  OPEC noted that "stable oil prices – at a level which did not affect global economic growth but which, at the same time, allowed producers to receive a decent income and to invest to meet future demand – were vital for world economic wellbeing."  The next Ordinary Meeting of OPEC is scheduled to be held in Vienna, Austria, on 5th June 2015, immediately after the 2-day OPEC International Seminar on “Petroleum: An Engine for Development” on 3rd and 4th June.