BAKU, Azerbaijan, March 29. Per US request Brazil made a tentative pledge to increase oil exports but provided no detail how it is going to do so, Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS) told Trend.
“The market is skeptical about this pledge. It seems like a political statement more than a work plan. Count me as skeptic,” said the expert.
Bento Albuquerque, Minister of mines and energy of Brazil earlier said at the IEA ministerial that Brazil will be increasing its oil production in the upcoming months reaching additional 300,000 barrels per day by the end of the year. He noted that this represents an increase of 10 percent in Brazil’s current output. The statement was made as Europe is looking for alternative sources to replace Russian oil amid the war in Ukraine.
As for Venezuela, Luft believes that it is yet to be seen whether or not the Biden administration will agree to lift the sanctions and under what terms. There are initial conversations but nothing is finalized.
“Talks about ridding the world from Russian oil - 11 pct of traded oil - is childish and reflects poor understanding of how the oil market works. Europe can decide to purchase its oil from someone else but unless Russia’s oil finds another destination the price will spike so high that European economies will collapse like houses of cards. European governments are deeply dependent on tax revenues from fuel sales and cannot afford to lose this revenue,” the expert noted.
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