Oil Prices Tumble On OPEC-Russia Reports
A day after European leaders agreed on a wishy-washy partial ban on Russian oil imports, OPEC+ leaders are reportedly considering offering Russia an exemption from its production goals amid global sanctions threats.
The Wall Street Journal reports that some OPEC members are exploring the idea of suspending Russia’s participation in an oil-production deal as Western sanctions and a partial European ban begin to undercut Moscow’s ability to pump more, OPEC delegates said.
Exempting Russia from its oil-production targets could potentially pave the way for Saudi Arabia, the United Arab Emirates and other producers in OPEC to pump significantly more crude.
The algos sold first without thinking, smacking WTI down from $120 to below $115…
Notably, at the same time, Bloomberg reports that, according to other delegates, OPEC+ will likely hold firm to its oil production plans this week even as the European Union moves to sanction group member Russia.
OPEC has already “done all it can” to stabilize global markets, which face no shortfall of oil, Saudi Foreign Minister Prince Faisal bin Farhan said last week at the World Economic Forum in Davos, Switzerland.
Additionally, Saudi Energy Minister Prince Abdulaziz bin Salman said earlier this month that prices are being whipped up not by a shortage of crude, but a lack of refining capacity in consuming nations to produce fuels like gasoline,
To clarify: If Russia is exempted from the OPEC+ production goals… and UAE/Saudis increase production to fill that gap… then the difference from current OPEC+ output and post-exemption output will be minimal at best
We also point out that these headlines are coming shortly after Russian foreign minister Lavrov visited The Kingdom.
Tue, 05/31/2022 – 14:11