This week we will discuss the OPEC+ countries declaring output from October 2022 and US & Europe planning to put cap of Russian oil. US & Europe have put sanctions on Russia and limited their purchase from Russia have triggered Crude oil prices soaring from 24-Feb-22 onwards.
Crude oil is currently trading around prices seen before 24-Feb-22, Russia-Ukraine crisis begins. WTI Crude oil near $85 and Brent Crude oil near $90. Average crude oil prices during 2015 – 2019 were trading in range of $55 to $70.
OPEC+ Agrees To cut 100,000 bpd from October 2022
The group will reduce production by 100,000 barrels a day next month, taking output back to August levels. Its next scheduled meeting is on 5-Oct-22 to discuss further steps.
Russian Crude oil – Price cap proposed by G7 nations
US & European nations (NATO nations) have put various sanctions on Russia after Russia started its military operation in Ukraine on 24-Feb-22 which is currently going on till date with more than 6 months.
Equichain Wealth Advisors: View & Opinion
G7 nations planning to cap pricing will not be successful unless India and China join them and current geo-political situation it seems highly impossible.