Today, Sunday, the Wall Street Journal revealed Russian opposition to reducing oil production at the present time, suggesting that “OPEC Plus” will maintain its oil production level when it meets tomorrow, Monday.
Sources added to the newspaper, that Moscow is concerned that the production cut may send a message to oil buyers that the supply of crude oil exceeds global demand, reducing its influence with consuming countries, which still buy Russian oil at large discounts.
The sources emphasized that Russia has benefited from high oil prices since the Ukrainian invasion, but that Moscow is more concerned about maintaining its influence in negotiations with Asian buyers, who have already bought its crude, after the Europeans and the United States began to avoid it this year.
Last week, the Group of Seven launched a plan to ban the insurance and financing of shipments of Russian oil and petroleum products, unless they are sold under a specified price cap, and Russia threatened to stop supplying oil and gas to countries participating in the price cap scheme.
In contrast, Saudi Arabia, one of the world’s largest oil producers, has floated the idea that the coalition might consider cutting production, an idea supported by members of the organization such as the Republic of Congo, Sudan and Equatorial Guinea, because they pump more than global demand for oil, and often leads to a reduction in production. OPEC Plus production will raise prices, which is what these countries want to achieve significant gains.