OPEC+ Walks a Fine Line on Oil Output: Elements by Julian Lee - Bloomberg
The OPEC+ group of oil producers will meet a week today to discuss production plans for September.
Their deliberations come after US President Joe Biden visited Saudi Arabia to press the group’s Gulf Arab members - the only ones with significant spare production capacity - to open their taps wider.
Expect Russia (quietly) to counter calls for more Persian Gulf crude. Its own shipments have come under pressure from the loss of most of its north European market and the need to offer big discounts to sell displaced barrels into India. President Vladimir Putin wants high oil prices both to boost state revenues and to hurt those who oppose its invasion of Ukraine.
The Kremlin wields real power in the group. OPEC worked hard to bring Russia into the expanded market management club and will do all it can to keep it there.
The group also faces uncertainty over demand for its crude in the coming months as rising interest rates, Europe’s energy crunch and China’s never-ending Covid battle cloud the economic outlook.
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