l’OPEC told the European Union on Monday that an oil embargo against Russia would adversely affect supplies of oil to the Old Continent. At a meeting in Vienna where European officials and OPEC representatives came together, the two delegations left with a not very reassuring comment about the impact of new sanctions against Russia on the supply of hydrocarbons to the European Union.
OPEC told the EU delegation that current and future sanctions against Russia could trigger one of the worst oil supply shocks and that it would be impossible to replace volumes from Russia, prompting major consumer countries to extend their appeal to OPEC to cut production. to increase, to increase.
“We could potentially anticipate losses of more than 7 million barrels per day (bpd) of Russian oil and other hydrocarbon exports due to current and future sanctions or other actions,” OPEC Secretary General Mohammad Barkindo said. , whose comments were reported by the Reuters agency.
“Given the current outlook for demand, it would be nearly impossible to offset a volume loss of this magnitude,” the OPEC secretary general warned. This EU-OPEC meeting is part of the search for alternatives to Russian hydrocarbons launched by the European Commission after the last European summit.
The sharp rise in oil prices as a result of the conflict between Russia and Ukraine has accelerated this European search for alternatives to Russian oil and gas. The United States and the International Energy Agency (IEA), in turn, have repeatedly called on OPEC to relax the locks and supply the market with additional quantities. In addition, the European Union reiterated its call during its meeting with
OPEC representatives are calling for an increase in deliveries to help lower prices. EU representatives also underlined the role the organization should play in balancing oil markets.
OPEC has remained unmoved in the face of relentless calls from consumer countries for an increase in production to cut prices that have peaked in 14 years and have contributed to a spectacular rebound in inflation.
At their Monday meeting with OPEC delegates, EU officials emphasized that the Organization of Petroleum Exporting Countries could provide more production from its spare capacity. However, OPEC’s secretary general replied that the volatility that currently characterizes oil markets is the result of factors beyond the organization’s control.
OPEC+, an alliance that brings together OPEC members and other non-OPEC producers, including Russia, has agreed to increase production by about 432,000 barrels per day in May, in line with its liquidation strategy.
Oil, for that matter, has so far been excluded from EU sanctions against Russia. But some senior EU officials said last week that oil could be the next sector to be put on the sanctions list. However, EU countries are hesitant to extend sanctions to oil and gas because of the Old Continent’s heavy reliance on Russian hydrocarbons.
Australia, Canada and the United States, which are less dependent on Russian supplies than Europe, have already banned the purchase of Russian oil.
HAS. TITOUCH
