Oil prices have surged above $100 a barrel since Russia’s invasion of Ukraine.
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Oil prices edged higher after briefly falling back on Tuesday following a report that some OPEC members are exploring the idea of exempting Russia from an agreement to raise oil-production targets.
Russia has struggled to keep up with output quotas amid sanctions following its invasion of Ukraine. If Russia is exempted, other exporters such as Saudi Arabia would be increase production even more to make up for the Russian shortfall.
While that should ease supply concerns, the European Union’s agreement to phase out most Russian imports by the end of the year, along with China opening up from Covid lockdowns, pushed prices higher.
U.S. West Texas Intermediate crude, the U.S. benchmark, rose 1.5% to $116.38 a barrel on Wednesday. Brent crude, the international benchmark, rose 1.5% to $117.25 a barrel.
So far, there has not been a formal push for OPEC members to pump more crude than planned months ago, The Wall Street Journal reported. But some members in the Persian Gulf have begun planning for an output increase sometime in the next few months, the Journal said, citing OPEC delegates.
OPEC’s 13 members and 10 non-OPEC producers led by Russia are set to meet on Thursday to approve a planned increase of 432,000 barrels a day, the Journal report said.
Talks about exempting Russia have been accelerated after European Union leaders agreed late Monday to cut 90% of oil imports from Russia by the end of this year.
Write to Lina Saigol at [email protected]
