Saudi Arabia: Willing to increase oil production if reduced by Russia

Saudi Arabia appears ready to increase production oil If Russia’s cuts too much due to Western sanctions, the Financial Times reported on Wednesday, citing imgs.

Discussions have been held on the possibility of an immediate increase in production of Saudi Arabia and the United Arab Emirates, and it is not ruled out that this will be announced at today’s OPEC + meeting in Vienna, according to the publication.

The OPEC + group includes the 13 member states of the Organization of the Petroleum Exporting Countries, led by de facto Riyadh, and 10 of their allies under the leadership of Russia.

Production increases scheduled for September could be accelerated to July and August, according to Financial Times imgs, according to the Athens News Agency.

Up to this stage, the Saudi Arabia rejected calls, especially from the US, to significantly increase production beyond those agreed under OPEC +. However, always according to the FT publication, he agreed to change his stance in the context of the ongoing rapprochement between Washington and Riyadh.

At today’s OPEC + summit, which starts at 14:00 (Vienna time; 15:00 Greek time), the EU embargo on Russian oil is expected to be on everyone’s minds, which will theoretically reduce its imports by 90% by end of the year to drain the funding of the war in Ukraine.

The United Kingdom has also pledged to suspend imports by the end of the year, and the United States has already imposed an embargo on Russian oil and gas.

Some analysts predict a rift in the OPEC + group, or even its exclusion Russia from setting quotas in the Wall Street Journal, amid US-Saudi ferment.

So far no one was able to send in the perfect solution, which is not strange. Saudi Foreign Minister Faisal bin Farhan told the recent World Economic Forum in Davos that the kingdoms “did what they could” and that the issue “is more complicated than just adding barrels to the market”.

The fact that the Gulf economies are deaf to Western calls is partly due to the fact that they are making huge profits, as the barrel has reached well over $ 100. Saudi Arabia recorded the largest growth of its economy in recent years in the first quarter. Hence their “hesitation to open the taps more”, which is not certain to dissipate, according to Susanna Streeter, an analyst at Hargreaves Lansdown.

Even if it wanted to, the OPEC + group could not replace the quantities removed from the market by Russia, given the difficulties of some of its member states in meeting their quotas.