Russia and OPEC voices opposition to America
News_Code: 355536 11/17/2021 1:25:46 PM
Russia and OPEC voices opposition to America
Russia has sided with other OPEC members, who have opposed the US calls for faster production, saying there is no oil shortage on the world market and that there may be an oversupply as early as next year.
 

Russia's Deputy Energy Minister Pavel Sorokin told Bloomberg on the sidelines of the Adipec Oil and Gas Conference that the process of reducing reserves had stalled, indicating that there was no shortage at the moment.

The Russian deputy energy minister's remarks echoed similar remarks by other OPEC Plus members, including Saudi Arabia and the United Arab Emirates, who said the group was in no hurry to increase supply faster.

US President Joe Biden, worried about rising gasoline prices to a seven-year high, has called on OPEC Plus to increase production faster. But the UAE told the Adipec conference that OPEC and its allies were likely to maintain their current plan to increase production by 400,000 barrels per day. The group has ignored calls from countries, including the United States, for faster production to control rising prices. Saudi Arabia expects reserves to increase in the next few months, reducing the need for a faster increase in supply from OPEC Plus.

"Everyone expects a supply surplus from the beginning of the first quarter or the second quarter of 2022," Sorokin said.

This year, Brent crude has risen about 60 percent to more than $ 80 a barrel as economies recover from the Covid 19 pandemic and demand has improved. Higher energy prices have boosted inflation. In a recent meeting, OPEC and its allies agreed to increase production by 400,000 barrels per day in December. However, a number of OPEC Plus Group producers, including Nigeria and Angola, have difficulty raising production capacity due to a lack of investment in upstream sectors.

According to Bloomberg, Sorokin said that as soon as the OPEC Plus agreement and market needs allow, Russia could increase its oil production to the pre-pandemic level of about 11.32 million barrels per day. It produced an average of 10.843 million barrels per day last month. Although it is difficult to estimate Russia's oil production accurately, Bloomberg calculations show that it produced about 120,000 barrels per day above its quota last month.