The Organization of the Petroleum Exporting Countries (OPEC) has declared itself unable to make up for any disruption 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 liquid exports, OPEC Secretary General Mohammed Barkindo said yesterday.
“Given the current demand outlook, it would be nearly impossible to replace a loss in volume of this magnitude.” The current volatility in the market is the 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 meeting in Vienna.
Russian oil is currently not subject to EU sanctions but is under consideration as part of another package of measures. Australia, Canada and the USA, on the other hand, have already banned such purchases.