see photosOPEC (Organization of the Petroleum Exporting Countries) logo painted
OPEC told the European Union on Monday that current and future sanctions on Russia could cause one of the worst oil supply shocks ever and that it would be impossible to change those volumes, and indicated it would not pump more.
EU officials held talks in Vienna with representatives of the Organization of the Petroleum Exporting Countries and called for an increase in the group’s production and the EU considers possible sanctions on Russian oil.
“We could see a loss of more than 7 million barrels per day (bpd) of Russian oil and other liquid exports as a result of current and future sanctions or other voluntary actions,” said OPEC Secretary General Mohamed Barkindo. His speech as seen by Reuters.
“Considering the current demand outlook, it would be nearly impossible to convert losses of this magnitude into volume.”
An EU official told Reuters the EU reiterated its call at the meeting for oil-producing countries to consider whether they can increase deliveries to help cool oil prices.
EU representatives also pointed out that it is OPEC’s responsibility to ensure a balanced oil market, the official said.
OPEC has resisted calls by the United States and the International Energy Agency to pump in more crude to cool prices, which last month after Washington and Brussels imposed sanctions on Moscow following Russia’s invasion of Ukraine. had reached the peak of the year.
In the meeting with OPEC, the EU said OPEC could provide output in excess of its excess capacity, according to an OPEC document seen by Reuters.
Still, Barkindo said the current highly volatile market was the result of “non-fundamental factors” outside OPEC’s control, in a sign the group would not pump more.
OPEC+, which includes OPEC and other producers including Russia, will increase output by about 432,000 barrels per day in May as part of a gradual unwinding of output cuts undertaken during the worst of the COVID-19 pandemic Is.
The EU-OPEC meeting on Monday afternoon was the latest in talks started between the two sides in 2005.
Russian oil has so far been kept out of EU sanctions. But last week after the 27-nation bloc agreed to approve Russian coal – the first to target energy supplies – some senior EU officials said oil could be next.
The European Commission is drafting proposals for an oil embargo on Russia, the foreign ministers of Ireland, Lithuania and the Netherlands said at a meeting of EU foreign ministers in Luxembourg on Monday, though no agreement on sanctions on Russian crude happened.
Australia, Canada and the United States, which are less dependent on Russian supplies than Europe, have already imposed sanctions on Russian oil purchases.
EU countries are divided over whether to follow suit, given their high dependence and the move’s potential to further fuel already high energy prices in Europe.
The European Union expects to reduce oil use by 30% by 2030 from 2015 levels as part of its planned policies to fight climate change – although in the short term, a sanction to replace Russian oil with alternative supplies would be one. Dash will trigger.
(Reporting by Kate Abnett; Editing by Mike Harrison and Susan Fenton)
0 notes
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
for the latest auto news And AnalysisFollow carandbike.com Twitter, Facebookand subscribe to us youtube Channel.