(Bloomberg) -- Europe’s strenuous effort to break its dependence on Russian energy isn’t getting any support from the OPEC cartel.
The European Union plans to ban Russian crude oil over the next six months in protest against President Vladimir Putin’s invasion of Ukraine. Yet delegates from the Organization of Petroleum Exporting Countries and its partners are unlikely to replace any supply gap when they gather tomorrow.
Instead, the so-called OPEC+ alliance led by Saudi Arabia will probably ratify plans for a modest production increase for June of 430,000 barrels a day, the officials say. It might be difficult to decide otherwise, given that Russia is a leading member of the coalition.
If anything, the group’s sense of caution about opening the taps has only solidified. A technical committee meeting on Wednesday deepened estimates for the surplus facing global oil markets this year, to 1.9 million barrels a day from 1.3 million.
OPEC+ Set to Stick With Supply Plan Even as EU Eyes Russia Ban
“The pandemic clearly remains with us, as has been evident most recently with lockdowns across China,” OPEC Secretary-General Mohammad Barkindo told representatives at the meeting.
Even if other members did want to replace lost Russian volumes, they’d likely struggle: OPEC effectively failed to implement any of its planned output increase last month, a Bloomberg survey showed on Tuesday.
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