On Friday, Russian President Vladimir Putin announced that the OPEC+ group, which includes major oil producers like Russia, anticipates an increase in global oil demand, particularly during the summer months. His remarks indicate that the group may proceed with further increases in oil production.
In April, OPEC+ surprised the oil markets by agreeing to an output rise for May that exceeded expectations, despite facing weak prices and a downturn in demand. Recently, the coalition has opted to maintain production increases beyond their initial plans.
Putin emphasized that the global consumption of crude oil and oil products is on the rise, driven by economic growth. He mentioned that production levels will align with these demand increases, particularly as summer approaches.
Furthermore, Putin addressed Europe’s intentions to impose tighter sanctions on Russia, which include reducing the price cap for Russian oil from $60 to $45 per barrel. He asserted that heightened sanctions would ultimately be detrimental to those imposing them.
According to Putin, it is not feasible to completely “shut down” Russia’s oil sector, suggesting that the impact of sanctions on Russia will not be significant. Looking ahead, a meeting of eight OPEC+ member countries, including Saudi Arabia, Russia, Kuwait, Iraq, the UAE, Kazakhstan, Oman, and Algeria, is scheduled to take place online on July 6 to evaluate their production policies.
This meeting could provide further insights into the group’s strategies in light of current market conditions.