Filenews 2 June 2022
Oil is retreating close to $113 a barrel after reports that Saudi Arabia is ready to pump more oil if Russian production falls significantly due to sanctions over the country's invasion of Ukraine.
West Texas Intermediate's futures fell more than 3%, only to balance shortly afterwards.
The Financial Times reported that Saudi Arabia had hinted to its Western allies that it was ready to increase its oil supply.
The news comes ahead of OPEC+'s monthly meeting on Thursday, at which the group is expected to endorse a modest increase in production in July.
The U.S. has repeatedly called on the cartel to increase production faster to cope with rising gasoline prices and higher inflation in decades, which is rekindled by the war in Ukraine.
Also, President Biden is expected to visit Saudi Arabia later this month as part of an international trip that will include meetings within the framework of NATO and the G7, Bloomberg sources say.
There have been discussions on the immediate boost of supply by Saudi Arabia and the United Arab Emirates, which can be announced at the OPEC+ meeting on Thursday, although nothing has been finalised.
The production increases scheduled for September may come earlier, in July and August.
The July delivery WTI stood 1.9% lower at $113.13 a barrel, after falling as much as 3.1%.
The August delivery Brent fell 1.7% to $114.32 a barrel.
Moscow calls THE EU's move to phase out Russian oil "suicidal"
Russia warned on Thursday that the European Union's decision to partially phase out Russian oil would likely destabilize global energy markets, calling it a "suicidal" step that could backfire on the bloc.
EU leaders agreed in principle on Monday to cut oil imports from Russia by 90% by the end of this year, taking the bloc's toughest sanctions since the start of the invasion of Ukraine, which Moscow calls a "special military operation."
"The European Union's decisions to phase out Russian oil and petroleum products, as well as to ban the insurance of Russian merchant ships, are very likely to cause further price increases, destabilize energy markets and disrupt supply chains," the Russian Foreign Ministry said.
The EU has hit Russia with multiple rounds of sanctions since it invaded Ukraine in February, showing unspeakable speed and unity given the complexity of the measures.
European Council President Charles Michel said the move to phase out Russian oil would deprive Moscow of a huge source of funding and put pressure on it to end its military campaign, but Moscow warned that the measures would end up harming the bloc's economy.
"Brussels and its political sponsors in Washington bear full responsibility for the risk of aggravating global food and energy issues caused by the illegal actions of the European Union," the Russian Foreign Ministry said.
Source: Capital.gr
