OPEC helps Russia reduce oil pressure
OPEC can type Russia from oil production quotas. This move will help reduce pressure on Moscow in the context of Western sanctions.
Some members of OPEC+, including OPEC and its allies, led by Russia, are considering whether to exempt Russia from the oil production deal when the group meets on June 2, The Wall Street Journal reported.
The group, who spoke on condition of anonymity, said the group was concerned about growing economic pressure on Russia and its ability to pump more crude to cool soaring oil prices.
Negotiations on the exclusion of Russia were accelerated after the EU agreed on May 30 to reduce oil imports from Russia by 90% by the end of the year.
If Russia is exempted from OPEC+, other exporters such as Saudi Arabia will increase production further to make up for Russia’s shortfall.
The move to exempt Russia could be a premise for Saudi Arabia, the United Arab Emirates (UAE) to use spare production capacity, expert Andrew Lipow of Lipow Oil Associates in Houston told Reuters.
OPEC+ has eased its record production cuts since the COVID-19 pandemic. Under the agreement reached last July, the group was targeted to increase production to 432,000 barrels per day by the end of September.
Oil prices fell on June 2, with international benchmark Brent trading 2% lower at $113 a barrel. US WTI crude also fell 2% to $112 a barrel.
at Blogtuan.info – Source: laodong.vn – Read the original article here
