In case of shortage – Saudi Arabia could increase oil production

“With a possible energy crisis in Europe and a price cap on Russian oil, we can’t throw every barrel on the market now,” said an insider. Each additional barrel of oil would increase the pressure on prices while “unnecessarily reducing spare capacity,” said analyst Tamas Varga of brokerage firm PVM.

Financing quota increased
OPEC+ recently increased oil production quotas in what one insider called a “goodwill gesture to US President Joe Biden”. He had repeatedly demanded that production be increased. After all, even Russia, Iran and Venezuela, despite their resentment towards the United States, had reached this compromise. This “significant increase” in oil production could now cause Saudi Arabia and the United Arab Emirates to increase their oil production if there are supply problems in the winter.

This option should remain open. Sources say Saudi Arabia, the Emirates and some other members of the export cartel have additional production capacity of 2 to 2.7 million barrels per day. Many other exporting countries, on the other hand, would hardly be able to meet these quotas because their production facilities have expired.

Oil price has fallen slightly
The oil price fell slightly on Thursday afternoon. Around 5 p.m., a barrel (159 liters) of North Sea Brent cost 94.54 dollars (equivalent to 92.41 euros), which is 2.6 percent below the value of the previous day. The Brent price is therefore moving back to the February level. Prices fall because in a weak economy there is usually less demand for oil, petrol and diesel.