Oil prices pulled back some of their gains on Tuesday after a report that some OPEC members were exploring the idea of suspending Russia's participation in an oil-production deal.
Exempting Russia from OPEC+, which groups the cartel and allies, could potentially pave the way for other producers to pump significantly more crude, something that the U.S. and European nations have pressed them, the Wall Street Journal reported, citing OPEC delegates.
“The suspension of Russia from OPEC plus could be a precursor to Saudi Arabia and the United Arab Emirates utilizing their spare production capacity, because they would feel that they no longer have a production quota agreement that needs to recognize Russia's interest,” said Andrew Lipow of Lipow Oil Associates in Houston.
Leave a Reply