Vladimir Putin Oil Warning stated that it is probable that the reductions in oil supplies initiated by Saudi Arabia and Russia will be prolonged as the OPEC+ alliance endeavors to support and stabilize prices.
The president of Russia expressed that it is likely that the two leading oil-producing countries in the world and their partners will “maintain our collaborative efforts.”
When questioned about the possibility of extending the supply reduction agreement, he stated during the Russian Energy Week conference in Moscow, “It’s probable. We must engage in discussions with our fellow stakeholders since our choices are reached through unanimous agreement.”
“Today it looks like we will continue our cooperation.”
The comments represent Putin’s most emphatic indication so far that OPEC+ production reductions will likely continue significantly into 2024 and potentially extend even further.
In the previous month, Saudi Arabia, the dominant force within the Organization of the Petroleum Exporting Countries (OPEC), unexpectedly announced an extension of its reduction in daily oil production by 1 million barrels. This reduction, initiated in July, will now continue until the conclusion of the year.
Russia, being a part of the larger OPEC+ alliance and the globe’s second-largest oil supplier, has also prolonged its reduction in daily oil exports by 300,000 barrels until the year’s end.
Prices had experienced a 33% increase since mid-June, reaching approximately $97 per barrel. However, they subsequently decreased by 12% towards the end of September. It was only when the conflict in the Middle East erupted that prices rebounded, rising by roughly $3 per barrel.
The global standard for oil pricing, known as Brent crude, has decreased by 1 percent today, falling below $87, even in light of President Putin’s remarks during the Russian Energy Week forum held in Moscow.