OPEC is ready to make up for the oil shortage after US sanctions against Russia, but prices may rise - Kuwaiti Oil Minister

OPEC is ready to compensate for the deficit in the oil market after the US imposed sanctions against Russia if there is demand for it, said Kuwaiti Oil Minister Tarek al-Rumi. He also noted that we should expect an increase in oil prices. He is quoted by the Kuwaiti newspaper Al Anbaa.

The minister noted that countries affected by sanctions are likely to redirect their oil demand towards the Gulf states and the Middle East. According to him, the first signs of this are already visible, and OPEC countries are ready to meet additional demand.

“All OPEC countries are now exporting less than their capacity, and if demand grows, they can return production to the previous level. <...> OPEC is ready to return to the market the volumes that were previously withdrawn. We previously reduced production by about 1.6 million barrels per day and are returning them gradually, monthly. If demand increases, we are ready to fully restore previous volumes.”

On October 23, the United States and the European Union simultaneously introduced new sanctions against the Russian oil sector for the first time since Donald Trump returned to the White House.

The largest Russian oil exporters, Lukoil and Rosneft, were subject to restrictions.

The sanctions apply not only to the companies themselves, but also to their 34 subsidiaries. All counterparties of these legal entities now face secondary US sanctions if they do not cease cooperation with the sanctioned companies within the next month.