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OPEC Members Mull Suspending Russia From Oil-Production Deal, Planning Output Increase To Meet Potential Shortfall: Report
Pumps draw petroleum from oil wells through the night. (David McNew/Getty Images)
The Organisation of Petroleum Exporting Countries (OPEC) is reportedly mulling to exempt Russia from an oil-production deal, which was agreed last year, and may increase their outputs as Moscow's production capacity is taking a hit due to western sanctions.
With Russia out of the deal, Saudi Arabia, the United Arab Emirates and other OPEC members to produce more crude oil to meet the production targets.
After the Russia began military offensive in Ukraine earlier this year, the global oil prices have soared above $100 a barrel as US and its other allies have imposed sanctions on Moscow, one of the world's three largest oil producers.
Many countries including the United States have urged the OPEC nations to hike the production to bring the oil prices down.
Russia is a leading member of OPEC+ which was formed in 2016. Apart from OPEC nations and Russia, the organisation also have former-Soviet states and other countries as its members.
OPEC’s 13 members and 10 non-OPEC producers led by Russia are set to meet on Thursday (2 June), when they are expected to approve a planned increase of 432,000 barrels a day, reports WSJ.
In an oil-production deal last year, Russia agreed with OPEC and nine non-OPEC nations to pump more crude each month.
However, with the sanctions adversely impacting Russia's ability to produce more oil, some members of the OPEC have begun planning for an output increase sometime in the next few months to make up for any potential Russian shortfall.
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