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Newsline: OPEC’s Top Diplomat Tells EU That Russia Oil Crisis Is Beyond Its Control

OPEC’s top diplomat told European Union officials that the current crisis in global oil markets caused by Russia’s invasion of Ukraine is beyond the group’s control. Russian oil supply losses stemming from current and future sanctions or a boycott by customers could potentially exceed 7 million barrels a day, OPEC Secretary General Mohammad Barkindo said on Monday. That would be far beyond the group’s capacity to replace, he told EU Energy Commissioner Kadri Simson, who had asserted the cartel’s responsibility to balance the market. (https://www.bloomberg.com/news/articles/2022-04-11/opec-tells-eu-that-russia-oil-crisis-is-beyond-its-control) Simson said that the oil-producers group could tap its existing spare output capacity to assist in the crisis, according to an OPEC document seen by Bloomberg. Barkindo said that markets are being swayed by political factors rather than supply and demand, leaving little for the organization to do. OPEC nations such as Saudi Arabia have rebuffed calls from major consumers like the U.S. to fill in the gap left by Russia. Besides their view of the market, the kingdom and its allies may have other reasons for holding back. Riyadh jointly leads an alliance of global producers with Moscow known as OPEC+, and may also be keen to preserve its political ties with the Kremlin, which have helped the Saudis lessen their reliance on the U.S.

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