Russian oil exports are vital to global supply and there is no source that can cover for the millions of barrels the nation contributes, according to OPEC’s secretary-general.
- The US is evaluating whether to ban imports of oil from Russia over its war on Ukraine and there are concerns Russia could redirect its volume over Western sanctions.
- Mohammed Barkindo, OPEC chief, stated that there is no capacity in the world that could cover for 7 million barrels each day from Russia.
- Brent crude rose 1.7% at $125.15 per barrel on Tuesday, increasing for the third consecutive day after reaching $139.13 per barrel the prior session. WTI rose 2.8% Tuesday.
- Meanwhile, Barkindo underscored the impact OPEC could make in the market as Russia’s invasion of Ukraine continues and Russia and the West trade threats.
OPEC and its allies have not shown any desire to ramp up production, leading to the squeeze on supply.
CL! up +7.61%, USOIL up +5.24%
Source: Markets Insider