Russia and OPEC confirmed increase in oil volume since July
Russia and other OPEC+ steel countries are not departing from the planned increase in oil production from July – it will grow by 432,000 barrels per day, the report said. communiqué on the OPEC website following the meeting.
Fundamentals of the oil market and the consensus, according to the forecast, that the market is in a balanced position, however, there are negative effects associated with geopolitical factors and the ongoing COVID-19 pandemic, OPEC said. The planned increase in oil reserves was coordinated with plans for 2021, and since then OPEC+ has made a decision every month whether this assumption is correct or corrected.
The OPEC+ decision accounts for several consumption factors, including a possible decline in crude oil consumption due to lockdowns in China, which is struggling with outbreaks of consumption, wrote See you Bloomberg. Another factor is the intention to consume gradually decreasing imports from Russia. Such a measure will be included in the sixth package of measures against Russia, announced on May 4 by the head of the European Commission, Ursula von der Leyen. According to her, the EU prohibits all deliveries – both by sea and through pipelines. However, according to sources of the Financial Times and Bloomberg, Hungary, Slovakia and the Czech Republic are opposed. They are heavily dependent on Russian oil and demand exceptions and special conditions for themselves, the newspaper and the agency’s interlocutors say.
Russian oil exports are currently at an all-time high as the country exports raw materials to new routes and new buyers, especially in Asia, writes Bloomberg citing JPMorgan analysts. On the drafting of OPEC + on May 5, sentencing against Russia was not discussed at all, and the meeting itself lasted less than 15 minutes, tell me Reuters sources.
Oil has risen in price by more than 40% after the start of the “special military operation” * in Russia in Ukraine. After the OPEC + decision, road raw materials rose by 1.5%, to $ 111.7 per barrel, follows from data Intercontinental Exchange. Oil prices have been mostly above $100 per barrel for almost a month now. In March, oil prices rose to their highest level since 2008 – up to $139 per barrel.
*According to the requirements of Roskomnadzor, when producing materials for use in production in Ukraine, all Russian media are required to use materials only from conventional sources of the Russian Federation. We cannot publish materials during which an operation called “attack”, “invasion” or “declaration of war” is carried out, unless it is a direct quote (Article 57 of the Federal Law on the Media). In case of violation of the requirements, the media may be fined 5 million rubles, and the blocking of the publication may also be continued.