Sumary of Russia & Saudi Arabia respond to US oil move:
- OPEC and Russia are mulling a pause in the previously agreed on increase in oil production after Washington’s announcement of the release of strategic crude reserves, media reports say.
- OPEC, Russia, and a number of other oil-producing states struck a long-term deal earlier this year to boost their collective oil output by 400,000 barrels a day each month through next year, until they reach pre-pandemic production levels, which was slashed at the height of the pandemic to battle oversupply.
- All of them, except for China, also announced the release of reserves at varying volumes.
- However, the plan is seen by some as an empty gesture, as its proposed volume equals roughly one day’s worth of global demand for crude.
- Washington’s move came after repeated attempts to pressure OPEC and allies to increase production over the agreed to level.