Some OPEC members are discussing suspending Russia from participating in an oil-production deal as Western sanctions and an EU ban on Russian oil due to the war in Ukraine start to affect Moscow’s ability to pump more, the Wall Street Journal reported on Tuesday.
Russia, the world’s second largest exporter of crude, agreed last year with OPEC+ (the group composed of OPEC, Russia and other nine other oil producing nations) to incrementally increase oil production each month.
However, since Russia invaded Ukraine on February 24, the US and its European allies have imposed several rounds of crippling sanctions against Moscow, sending oil prices skyrocketing to above $100 a barrel.
The US had already banned Russian oil imports in March and Britain then said it would phase them out by year-end.
On Monday, the EU agreed to halt 90 percent of Russia’s crude imports into the bloc by year-end.
The WSJ report said Russian crude output is expected to fall by about eight percent this year.
“So far, there is no formal push for OPEC to pump more oil to make up for any potential Russian shortfall, but some members in the Gulf have begun planning for an output increase sometime in the next few months,” the WSJ reported citing OPEC delegates.
The US has asked Saudi Arabia, the world’s biggest crude exporter and OPEC member, to increase oil production to counter the disruption in the global energy market.
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