Russia has taken center stage in oil exports. For the first time Russia has topped Saudi Arabia in oil exports. Russia exported about 7.4 million barrels per day in the first quarter compared with Saudi Arabia's 7 million barrels per day.
Russian supplies of energy to the US jumped 33% in the past six months compared with a drop of 29% for Saudi Arabia in the same period.
Russian production also benefits Europe. Russia exports a large quantity of its oil to European countries.
Saudi Arabia and OPEC are trying to push oil prices to $75.00 -- $80.00 barrel. Last year OPEC cut production by 4.2 million barrels per day to push up the price.
Now, suddenly Russia moves into first place, threatening OPEC's ability to control prices. In fact, oil analysts are predicting that oil will drop 4.7% to $64.50 per barrel.
US crude supplies are up 13% from a year ago to 343.3 million barrels.
This a significant development in the oil patch. It is the first time that anyone has challenged OPEC in oil production. Hopefully, it will weaken OPEC's stranglehold on the price of oil.
Do you believe that the price of oil will come down this year?