• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days They pay YOU to TAKE Natural Gas
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 6 hours A question...
  • 5 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 11 days The United States produced more crude oil than any nation, at any time.
Groundhog Day for OPEC+

Groundhog Day for OPEC+

Ahead of a critical meeting…

Chevy Malibu Discontinued as Company Transitions to EVs

Chevy Malibu Discontinued as Company Transitions to EVs

Chevy's long-running Malibu sedan is…

Republicans Pressure Biden to Deliver Weapons to Israel

Republicans Pressure Biden to Deliver Weapons to Israel

The U.S. House of Representatives…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Russian Resistance Makes OPEC+ Production Cut Unlikely

  • Several OPEC members have hinted at a potential cut to oil production, including Saudi Arabia.
  • Russia is reportedly against such a move, worried that it would diminish its sway over large Asian oil buyers by signaling there is sufficient supply for markets.
  • This opposition from Russia makes it likely that OPEC+ will leave its quotas from September unchanged for October when it meets today.
Production

Russia would not support a decision by OPEC+ to cut oil production, the Wall Street Journal has reported, citing unnamed sources close to the cartel.

While several OPEC members have signaled support for such a move, including Saudi Arabia, Russia is not among them, according to the sources. The reason, they said, was that a supply cut might diminish its sway over large Asian oil buyers as it would be a signal there is more oil in the world than there is demand for.

Reuters reported, citing three sources from OPEC, that the extended cartel, which is meeting later today, will probably leave its quotas from September unchanged for October. Some, however, suggested an output cut as a way of countering the price slide that has seen Brent crude fall below $100 and stay there, and WTI fall below $90 per barrel last week.

According to the Wall Street Journal sources, Russia voiced its objections to a production cut last week at a preliminary meeting, where OPEC+ set as its baseline scenario an oil market supply surplus of 900,000 bpd for this year and next.

This scenario was misleading, the unnamed sources said, describing Russia’s stance, because they assumed that all OPEC+ members are producing as much as their quotas call for. In reality, OPEC specifically has been undershooting its production targets massively ever since it started ramping production back up following the pandemic cuts.

The gap between quotas and actual production has reached 3 million bpd in recent months, the Wall Street Journal noted.

At the same time, prices have been hit by deepening worries about the global economy. These fears are particularly potent in Europe and the U.S. as central banks on both sides of the Atlantic have signaled their desire to tighten at all costs, which could well lead to a major recession.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News