Some OPEC+ members considering suspending Russia from production deal
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OPEC+ gets ready to increase production if Russia is to be excluded.
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OPEC+ sees the effects of a Russian oil ban which was issued yesterday.
A number of OPEC members are considering suspending Russia from the OPEC+ oil production deal, according to the Wall Street Journal on Tuesday, citing some officials.
Western sanctions, in addition to a partial European ban on Russian oil - which was issued yesterday - are impacting Russia's ability to pump more oil.
Should Russia be excluded from the deal, some OPEC members are preparing to boost oil production, according to OPEC delegates.
Riyadh supports OPEC+ agreement that includes Moscow
As Europe grapples with an energy crisis after the Ukraine war, Saudi Arabia is hoping that an OPEC+ deal will include Russia, according to Riyadh's energy minister Abdulaziz bin Salman last week.
Bin Salman divulged to the Financial Times that Riyadh is hoping "to work out an agreement with OPEC+... which includes Russia," insisting the "world should appreciate the value" of oil producers' alliance.
Although the minister said it's too early to predict the details of the agreement, OPEC+ will increase production "if the demand is there."
The lack of global refining capacity and taxes are responsible for the rising prices, according to the minister, who recommends that governments need to encourage the industry to invest more in hydrocarbons.
"This situation needs people to sit together, focus, take out the masquerade and the so-called political correctness," Abdulaziz bin Salman said, pointing out that "for the last three years, the whole world lost around 4mn barrels of refining capacity, 2.7mn of them just from the beginning of Covid."
Earlier this May, the OPEC+ alliance decided to stick to the oil output cut deal and increase production only by 432,000 barrels a day in June.
According to Secretary-General of the OPEC alliance Mohammad Barkindo, it isn't possible for OPEC+ members to replace Russian oil exports of more than 7 million barrels a day.
Western media attributes Saudi's refusal to increase oil production to deteriorating relations between Riyadh and Washington.
