BAKU, Azerbaijan, May 25. OPEC+ is not expected to increase its production any time soon, Gal Luft, co-director of the Institute for the Analysis of Global Security (IAGS) told Trend.
“The embargo on Russian oil is a soundbite which has little behind him. Even if it is formally announced it will take months for it to enter into force and even then, there will be multiple ways to circumvent it through the refined products market. And even if the embargo went into effect it will have little impact on Russia’s oil revenues. Russia will simply direct its product elsewhere. The big question is whether or not we will see new supplies from Venezuela as the US seems to be lifting some of the sanctions there,” he said.
Luft believes that Biden will try to meet Saudi Crown Prince next month in an effort to warm up the relationship and to persuade the Saudis to increase production but OPEC plus is not expected to increase its production any time soon.
“Exporters are concerned that overreaction and attempts to correct prices downward would result in a glut and price collapse. All considered they are behaving quite responsibly. I actually see reversal of prices back to the $100 level due to demand destruction mainly driven by the situation in China,” he added.
In early May European Commission President Ursula von der Leyen unveiled the sixth package of sanctions against Russia on Wednesday, including a complete ban on all Russian oil and refined petroleum products within the next six months and more sanctions against banks.
EU leaders will hold a special summit in Brussels on 30-31 May, where the package of sanctions is expected to be formally approved.
Hungary and Slovakia, which are heavily dependent on Russian energy imports, may get an exemption.
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