In response, the US will be forced to take action, including releasing oil from strategic reserves.
Russia and Saudi Arabia have agreed to significantly reduce oil production. It is planned that the reduction in production will be announced at the upcoming meeting of OPEC +. On Wednesday, October 5, the Financial Times reports.
“The amount of the cut has not yet been agreed upon, but Saudi Arabia and Russia are pushing for cuts of 1-2 million barrels per day or more,” the article said.
As the newspaper wrote, in response, the United States will be forced to take action, including the release of oil from strategic reserves.
Russian Deputy Prime Minister Alexander Novak is expected to attend the summit and support production cuts “because Russian oil is already being sold at a deep discount.”
As you know, the unofficial format of OPEC + was formed in November 2016, due to the dissatisfaction of many oil-producing countries with prices on the world oil market.
OPEC+ includes 10 countries – Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, South Sudan (the main producer and informal leader of the cartel is Russia, with 14% of world oil production ).
It was previously reported that the European Union will impose a price cap on Russian oil. In particular, the sanctions provide for “a ban on the transportation of Russian oil by sea to third countries at a price exceeding the limit, as well as related services.”
In the United States, they assessed the benefits from the Russian oil price cap
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.