Although the countries associated with the OPEC + group have decided to increase oil production during the summer months, the price of oil has risen.Investors are skeptical that Russia will be able to find other outlets for oil that it will not be able to export to the European Union.
The Organization of the Petroleum Exporting Countries and its allies (including Russia) have decided to increase black gold production by 648 thousand barrels per day. And in July and August. The decision came from Thursday’s meeting of OPEC + countries.
A few days earlier, there had been speculation about the impact on the global market of the European Union’s embargo on oil imports from Russia. There was talk that the Russian outage could be replaced by Saudi Arabia, for which it would mean additional revenue from the sale of oil on the world market.
Will Russia find new outlets?
However, Reuters reported that Russia was looking for markets to which it could redirect its production originally intended for the European Union. However, investors are skeptical about such variants and rather expect Russia to further reduce its mining. “It is debatable to what extent Russia manages to find other outlets. Therefore, it is likely that Russia will reduce its oil production in the coming months, “said Commerzbank analyst Carsten Fritsch. That’s why the price of oil went up slightly.
