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On May 3, OPEC issued a statement announcing that the seven OPEC+ countries (Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman) will hold an online meeting on May 3, 2026, to review the global market situation and outlook. The seven participating countries decided to implement a production adjustment of 188,000 barrels per day, on top of the additional voluntary adjustments announced in April 2023. This adjustment will be implemented in June 2026. The seven countries will meet again on June 7.On May 3, local time, Russian Presidential Press Secretary Dmitry Peskov stated that if Ukraine is unwilling to reach an agreement, Russia will use sustained and intensified military action until a "victory" is achieved to force it to accept it. Peskov emphasized that achieving the goal through a peace agreement—namely, resolving the Ukrainian issue through negotiations—remains a priority for Russia. Peskov stated that despite facing a "serious energy crisis," Russias interests will be protected. He pointed out that Ukraines attacks on Russian oil infrastructure will trigger a greater oil shortage, while the resulting increase in fuel prices will actually boost the revenue of Russian companies and the national treasury.TankerTrackers: This is the second time Iraq has shipped fuel oil to Syria for export by sea. The first shipment was sent to Spain last week.TankerTrackers: According to Al Jazeera, Iraq is diverting fuel to Syria in search of reliable alternative oil export routes due to the closure of the Strait of Hormuz.Iranian Foreign Ministry: Iranian Foreign Minister Araqchi briefed the Omani Foreign Minister on Irans efforts to end the war.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


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