Opec+ waits for Russia sanctions impact

Opec+ waits for Russia sanctions impact

The group is sticking to its planned monthly output increments despite concerns over Russian supply

London, 18 March (Argus) — Opec linchpin Saudi Arabia and its key Mideast Gulf ally the UAE are resisting calls to increase production, as uncertainty over the impact of sanctions on Russia, and continued oil price volatility reinforce producers' determination not to break ranks on Opec+ output policy.

UK prime minister Boris Johnson met with UAE Crown Prince Mohammed bin Zayed and his Saudi counterpart Crown Prince Mohammad bin Salman in the Mideast Gulf this week, in an unsuccessful attempt to persuade both to use their spare crude production capacity to increase oil output. The Opec+ coalition — of which Russia is the key non-Opec member — has stuck to its plan for 400,000 b/d monthly increments in its collective crude output target, resisting pressure to opt for a bigger hike in response to concerns over Russian supply.

Sanctions on Russia could force at least 3mn b/d of Russian production off line as soon as April, the IEA says in its monthly Oil Market Report. The agency projects that surging commodity prices will slash oil demand growth by over 1mn b/d this year. "As sanctions expand, companies shun