OPEC expects Russia’s invasion of Ukraine to curtail both the global oil and supply, signaling little need for the group to divert from its current production policy.
- It’s the latest signal that the cartel will remain on the sidelines of the heightening of the energy crisis. Mohammad Barkindo, Secretary-General of OPEC, stated that the oil market was beyond their control.
- The Organization of Petroleum Exporting Countries downgraded forecasts for global oil consumption in 2022 by 410,000 bpd.
- At the same time, it cut projections for supplies from outside the cartel by 330,000 bpd, with Russia’s output expected to reach 530,000 bpd, below prior estimates.
- Many oil refiners are boycotting Russian crude as international sanctions complicate arrangements with Moscow as widespread condemnation over its aggression in Ukraine grows.
Demand is facing uncertainty after China reimposes restrictions to contain the latest spread of the Covid-19 virus.
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