But Christopher Granville, managing director at TS Lombard, a research consultancy, says that while the relationship proved more enduring than analysts expected, short-term shared goals mask longer-term divergence on both oil and geopolitics. A higher oil price encourages production elsewhere, and giving up market share to other producers, mainly the US shale oil industry. While Saudi Arabia, which needs $70 oil to balance its budget, is happy to make this sacrifice, Moscow breaks even at just $40 a barrel. “Russia has no such need” to give up market share for higher prices, Mr Granville said.
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