Updated: Jul 14
The Wall Street Journal reports that the action would ease pressure on Moscow in the face of Western sanctions.
The Wall Street Journal (WSJ), citing anonymous OPEC delegates, said that certain members of the OPEC+ energy group are debating whether to exclude Russia from an agreement on oil production when they meet on Thursday. According to reports, the delegates are worried about the mounting economic pressure on Russia and its capacity to increase crude production to lower soaring prices.
After the EU decided on Monday to reduce its reliance on Russia for 90 percent of its oil imports by the end of the year, discussions regarding Russia's exclusion have picked up speed.
Other exporters, including Saudi Arabia, would be increasing supply significantly more to make up for the Russian shortfall if Moscow is spared.
Because they would feel that they no longer have a production quota agreement that needs to recognize Russia's interest, Saudi Arabia and the United Arab Emirates could use their excess production capacity as a result of Russia's suspension from OPEC Plus, Andrew Lipow of Lipow Oil Associates in Houston told Reuters.
Since the Covid-19 pandemic, OPEC and its partners, led by Russia, together known as OPEC+, have been easing historic output cuts. The business was mandated to raise output goals by 432,000 barrels per day each month through the end of September under a deal agreed in July of last year.
Thursday saw a decline in oil prices, with international benchmark Brent trading 2% lower at $113 per barrel. Additionally, the US crude benchmark WTI fell 2% to $112 per barrel.