OPEC Tells EU That Russia Oil Crisis Is Beyond Its Control

Author of the article: Bloomberg News Grant Smith (Bloomberg) — OPEC’s top diplomat told European Union officials that the current crisis in global oil markets caused by Russia’s invasion of Ukraine is beyond the group’s control. Russian oil supply losses stemming from current and future sanctions or a boycott by customers could potentially exceed 7…
OPEC Tells EU That Russia Oil Crisis Is Beyond Its Control

Author of the article:

Bloomberg News

Grant Smith

(Bloomberg) — OPEC’s top diplomat told European Union officials that the current crisis in global oil markets caused by Russia’s invasion of Ukraine is beyond the group’s control.

Russian oil supply losses stemming from current and future sanctions or a boycott by customers could potentially exceed 7 million barrels a day, OPEC Secretary General Mohammad Barkindo said on Monday. That would be far beyond the group’s capacity to replace, he told EU Energy Commissioner Kadri Simson, who had asserted the cartel’s responsibility to balance the market.

Simson said that the oil-producers group could tap its existing spare output capacity to assist in the crisis, according to an OPEC document seen by Bloomberg. Barkindo said that markets are being swayed by political factors rather than supply and demand, leaving little for the organization to do.

“These crises have compounded to create a highly volatile market,” Barkindo said, according to the text of his opening remarks. “I must point out, however, that these are non-fundamental factors that are totally out of our control at OPEC.”

The two representatives spoke during the regular dialogue between the EU and the Organization of Petroleum Exporting Countries.

Oil prices continue to trade near $100 a barrel as many refiners shun Russian supplies following the attack on its neighbor. The price rally has bolstered fuels like diesel, adding to the inflationary pressures and cost-of-living crisis hitting many consumers.

OPEC nations such as Saudi Arabia have rebuffed calls from major consumers like the U.S. to fill in the gap left by Russia. Besides their view of the market, the kingdom and its allies may have other reasons for holding back.

Riyadh jointly leads an alliance of global producers with Moscow known as OPEC+, and may also be keen to preserve its political ties with the Kremlin, which have helped the Saudis lessen their reliance on the U.S.

©2022 Bloomberg L.P.

Bloomberg.com

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
‘War of the states’: EV, chip makers lavished with subsidies
Read More

‘War of the states’: EV, chip makers lavished with subsidies

Author of the article: The Associated Press Marc Levy Published Apr 01, 2023  •  5 minute read HARRISBURG, Pa. (AP) — States are doling out more cash than ever to lure multibillion-dollar microchip, electric vehicle and battery factories, inspiring ever-more competition as they dig deeper into their pockets to attract big employers and capitalize on…
Your Sunday Asia Briefing: the Fed, the Squid and the King
Read More

Your Sunday Asia Briefing: the Fed, the Squid and the King

Are we there yet? This week could finally see the peak of the US interest-rate mountain and, fingers crossed, the last fire-sale for a US bank in the latest crisis. Yet manufacturing data from China suggests the global recovery still has a long way to go. Author of the article: Bloomberg News Adam Majendie Published…
Alpha Cognition Closes First Tranche of Private Placement
Read More

Alpha Cognition Closes First Tranche of Private Placement

Not for distribution in the United States or to U.S. newswire services VANCOUVER, British Columbia — Alpha Cognition Inc. (TSX-V: ACOG) (OTCQB: ACOGF) (“Alpha Cognition”, or the “Company”), a biopharmaceutical company developing novel therapies for debilitating neurodegenerative disorders, is pleased to announce that it has closed the first tranche of its previously announced private placement…