OPEC + heavyweights Saudi Arabia and Russia are rethinking their production strategies following plans by several countries to free crude oil from emergency stocks, according to anonymous sources in The Wall Street Journal.
The United States said on Tuesday it would release 50 million barrels of crude oil, or 32 million barrels as a swap that would need to be replaced in the coming years, and an accelerated release of 18 million barrels already. planned. China, Japan, South Korea and the UK have also announced the launch of SPR through US tender.
SPR’s release came after President Biden’s unsuccessful attempts to get OPEC + to ramp up production at a faster-than-expected rate, which is an increase of 400,000 bpd every month until all volumes production facilities have been restored.
In the days leading up to the release, OPEC + warned oil-producing countries that it would respond to a coordinated SPR release. Although it did not specify the amounts, OPEC + said at the time that it may reconsider its plans to add additional production.
WSJ sources now suggest that when the group reunites to discuss their production plans, they may rethink their strategy – which until now was almost a given – of increasing production by 400,000 bpd. additional.
OPEC + delegates said Saudi Arabia and Russia were considering a pause in the increase. Meanwhile, the UAE and Kuwait disagree with a break, WSJ sources said.
Even after the SPR release was announced on Tuesday, the UAE said yesterday that OPEC + will likely stay the course.
Russia and Saudi Arabia account for about half of total OPEC + production.
Oil prices rose shortly after the news broke, moving from a loss on the day to a gain, with WTI trading up 0.15%.
By Julianne Geiger for OilUSD
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