OPEC+: Russia is now threatened with forced exclusion

Created: 06/01/2022, 16:33

By: Patricia Huber

Due to the EU sanctions, Russia is now threatened with an OPEC exclusion - due to a lack of delivery quantities.

Vienna - After a long struggle, the EU countries have now agreed on an embargo for Russian oil.

In view of this, the oil price has temporarily climbed to its highest level since early March.

But that's not the only impact.

It could also have consequences for Russia's cooperation with the oil production organization OPEC.

Ukraine-News: Russia cannot meet OPEC targets through sanctions

Russia also joined the organization through Opec+.

However, the sanctions resulting from the Ukraine war could now persuade OPEC members to exclude Russia from the cartel.

According to the Wall Street Journal, it is considering suspending the oil production agreement with Russia.

Western sanctions would undermine the country's ability to produce more crude oil to meet the Verbund's production targets.

"Taking out Russia would give Saudi Arabia and other countries with free production capacities the opportunity to expand production more," commented Carsten Fritsch, foreign exchange expert at Commerzbank.

Because Russia is obliged to produce 10.4 million barrels of crude oil per month.

In April, however, it was just over nine million - and the trend is falling.

This is where countries like Saudi Arabia could step in and further exploit their capacities.

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Ukraine news: Russia exclusion as the end of Opec+?

According to experts, this step could even mean the end of the Opec+ alliance, as reported by the

.

The cooperation agreement between the 13 OPEC countries and the ten other oil-producing countries has been running since October 2018 under the leadership of Russia.

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The Opec+ meeting on Thursday could be more exciting than expected due to the latest developments.

So far, the market has been assuming a further moderate increase in production.