The Organization of Petroleum Exporting Countries (OPEC) has declared itself unable to compensate for any interruption in Russian oil supplies as a result of sanctions over the war in Ukraine. The supply gap could reach more than seven million barrels per day (bpd) of oil and other net exports, OPEC Secretary-General Mohammed Barkindo said today.
“Given the current demand outlook, it would be nearly impossible to replace a volume loss of this magnitude.” Current market volatility is a result of factors beyond OPEC’s control. This formulation is taken as a sign that the cartel will not increase its production. However, the EU requested a corresponding examination at the Vienna meeting.
Russian oil is currently not subject to EU sanctions but is being considered as part of another package of measures. Australia, Canada and the US, on the other hand, have already banned such purchases.