OPEC + removed 100 thousand barrels of excess oil from the market: what will this lead to
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How the reduction in raw materials production will affect anti-Russian energy sanctions
Oil prices are rising again. Barrel quotes, after some drawdown, returned to the $100 mark and are not going to stop there. Against this backdrop, the producing countries at the OPEC+ summit agreed to reduce production by 100,000 barrels per day, which will further warm up the demand for energy resources in the world market. This arrangement only plays into Russia’s hands: Western countries are trying to limit our country’s foreign exchange earnings by setting a marginal cost for Russian barrels, but the shortage of oil on the world market will reduce the implementation of the plan to a minimum.
On the eve of the next meeting of OPEC+ energy ministers on September 5, the importing countries of “black gold” were forced to turn to exporters with a straightforward request. G7 finance ministers called on oil-producing states to increase fuel production to “reduce volatility” in the market.
But OPEC + ministers (the alliance does not include members of the G7) ignored this request and decided, starting from October, on the contrary, to reduce production by 100,000 barrels per day compared to September. Following this, oil quotes, which have fallen by more than 25% since the beginning of the summer, crept up again and quickly reached $100 per barrel.
It should be noted that the decision of OPEC +, apparently, was influenced by another recommendation of the G7 ministers, who, on the eve of the meeting of the alliance representatives, agreed to set the maximum level of oil prices for Russian “black gold”. The size of the ceiling of the G7 country was not determined, but they promised to impose restrictions on the service of sea transportation of raw materials from Russia, purchased at a price exceeding the ceiling.
According to Sergey Suverov, investment strategist at Arikapital Management Company, it seems that oil importers want to bite their elbows: on the one hand, they are convincing producers of raw materials to reduce production of raw materials, on the other hand, they do not object to the West, which makes Russia more and more demands to limit the cost exported “black gold”. “It is not clear who the Europeans and Americans want to deceive in this case. By imposing yet another sanctions on the supply of Russian hydrocarbons, Western countries are creating another reason for the overall growth of quotations, as the supply of raw materials on the market is declining, ”the expert believes. Arab suppliers are also unable to increase the number of energy carriers on the world market by their own efforts, since most of the capacities in the Middle East operate at full load.
Help from Washington, which is under pressure due to record prices for motor fuel, is not worth waiting for. At the end of August, according to local regulators, US energy companies for the fourth time in the past two months have reduced the number of operating drilling rigs.
According to Nikolai Pereslavsky, an employee of the Department of Economic and Financial Research at the CMS Institute, possible changes in the production policy of OPEC + are not yet a fundamental factor influencing the development of the industry for domestic producers. “Russia is already selling oil below the market – the discount to Brent reaches $30 per barrel,” the analyst says. – Europe with enviable persistence imposes an embargo on energy resources from our country, automatically cutting off part of the supply of oil and gas. For some reason, the West is confident that Russia will agree to sell oil for $60 at a stock exchange price of $120. It is nonsense!”
The expert recalls that Russian energy supplies to Asia are now being actively established – China and India are gradually coming to the fore in the export of hydrocarbon raw materials. “If exports from Russia to Europe fall, then importers will have to replace supplies with something, which will lead to an additional increase in prices on the world market,” Pereslavsky explains. “At the same time, our exporters will be able to safely sell raw materials to Asia, and the countries of the Old World will simply have to overpay for new contracts.”
Newspaper headline:
Wells sent on vacation
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