"Oil Price Tug-of-War: Saudi Arabia and Russia's Breaking Point"

The decisions by Saudi Arabia and Russia to extend their production cuts have pushed oil prices to their highest level since November 2021, adding to inflationary pressures. The question is at what level will Saudi Arabia and Russia face overwhelming pressure from their customers to stop pushing prices higher. The U.S. and its allies are concerned about the impact of rising oil and gas prices on inflation and the economy, while China's willingness to encourage higher prices may be outweighed by the indirect impact on its own economy. Factors such as the U.S.'s NOPEC bill and China's export dependence could influence Saudi Arabia and Russia to moderate price rises. In the short term, the steady equilibrium price for Brent is estimated to be around $80-85 per barrel, with a ceiling of $95 per barrel. In the longer term, prices may revert back to the "Trump Range" of $40-45 per barrel on the floor and $75-80 per barrel on the ceiling.