Russia may halt oil production growth in response to US reserves dissolution - WSJ

In response to the dissolution of reserves by the United States and other countries, Russia and Saudi Arabia do not rule out a pause in the planned monthly increase in OPEC+ production, writes The Wall Street Journal.

According to the sources of the publication among the delegates of the upcoming OPEC + meeting, Riyadh and Moscow, the United Arab Emirates and Kuwait support the pause in production growth. Saudi Arabia believes that oil, which will hit the market from strategic reserves, can really increase supply and reduce prices, the newspaper said.

The OPEC meeting will be held on December 1, OPEC + with the participation of Russia on December 2. So far, the agreements between the exporting countries provide for an agreed increase in production by 400,000 bpd per day per month until reaching pre-pandemic levels.

On the eve of the United States announced the withdrawal of 50 million barrels of oil from strategic reserves to the market in an attempt to reduce the price of energy resources for the economy. Another 20 million will be provided by China, India, Japan and South Korea. However, this even raised Brent quotes above $80 per barrel: analysts considered such an increase in supply not too significant in terms of the market.

According to Bloomberg estimates , OPEC + countries will have to postpone the planned increase in oil production for at least two months - in December and January, in order to compensate for "reserve" volumes. It is likely that OPEC + will decide not to increase production at least in December, according to S&P Global Platts sources.