Situation of sanctions on Russia Can Saudi Arabia increase oil production?
New York, June 2: According to a report in the Financial Times, Saudi Arabia is reportedly preparing to increase oil production. According to the report, Saudi oil production capacity may be considered to increase if Ukraine’s war-caused Russian oil production falls due to new EU sanctions. Oil prices fell by 2 per cent on Thursday morning. At the same time, after gaining 0.5 percent on Wednesday, US West Texas Intermediate (WTI) crude came down to around $ 112 per barrel. Brent crude had settled at $113 a barrel after gaining 0.6 per cent a day earlier.
Oil shortage expected
Fears of an oil shortage have increased after the Russian attack in Ukraine. According to the information, the European Union has imposed more sanctions on Moscow. The ban also includes a ban on oil imports by sea. Here, in the midst of the ongoing conflict with Ukraine, Russia constantly showed sharp attitude, due to which many European countries including America started imposing sanctions. Meanwhile, Russia is now diplomatically active again. Russian Foreign Minister Sergei Lavrov is constantly holding meetings with many countries.
sanctions on Russia
Although America and many European countries have imposed many sanctions on Russia, OPEC Plus is a group through which Russia has once again started oil diplomacy and Saudi Arabia is supporting them openly. The European Union is also going to impose a complete ban on Russian oil soon, but even after all this, Saudi will continue its partnership with Russia. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has said that Saudi Arabia is going to make an agreement with OPEC Plus.
In this episode, Russian Foreign Minister Sergei Lavrov also met Sheikh Abdullah bin Zayed Al Nahyan, Foreign Minister of the United Arab Emirates, in Riyadh. Russia’s Foreign Ministry said on the meeting that the two leaders were happy about the level of cooperation between the group of OPEC+ countries. On the other hand, the visit of the Foreign Minister of Russia to Bahrain, Saudi Arabia and Turkey is about the agenda of this issue.
Also read: India made record purchases from Russia, Putin refused to give cheap oil to Pakistan
Saudi Arabia is reportedly preparing to increase its oil production if Russia’s output falls significantly as a result of the European Union’s new sanctions in the wake of war in Ukraine, the Financial Times said in a report citing people familiar with the matter.