Signaling it would not pump more oil, OPEC warned the European Union on Monday that it would be impossible to replace the oil volumes lost as a result of the current and future sanctions on Russia that could create one of the worst oil supply shocks ever.
Amid calls for the Organization of the Petroleum Exporting Countries (OPEC) to increase output as the EU considers potential sanctions on Russian oil, the group’s representatives held talks in Vienna with EU officials.
The foreign ministers of Ireland, Lithuania, and the Netherlands said during Monday’s meeting of EU foreign ministers in Luxembourg, that the EC is drafting proposals for an oil embargo on Russia but there’s no agreement yet to ban Russian crude.
According to a copy of his speech during the talks, OPEC Secretary-General Mohammad Barkindo pointed out to the potential loss of over 7 million BPD of Russian oil and other liquids exports as a result of current and future sanctions or other voluntary actions.
Barkindo stressed that it would be nearly impossible to replace a loss in volumes of this magnitude considering the current demand outlook.
A European Commission official informed later that the EU has reiterated its call for OPEC member countries to look if they can help cool soaring oil prices by increasing deliveries, underscoring at the same time OPEC’s responsibility to ensure balanced oil markets.
According to an OPEC document, the EU officials said during the meeting that OPEC could provide more production from its spare capacity, but according to Barkindo, the current highly volatile market is a result of non-fundamental factors outside OPEC’s control.
The crude prices reached a 14-year peak last month after the US and the EU imposed sanctions on Russia, but OPEC has continually resisted calls by Washington and the International Energy Agency to pump more to cool prices.
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