OPEC+ Agreed To Increase Oil Production In June

What will happen to the Kremlin's revenues now?

Saudi Arabia, as one of the most important players in the OPEC+ oil cartel, has lobbied for an increase in oil production among the association's countries for next month by the same 411,000 barrels per day.

This step, taken a month earlier, has already caused the price of black gold to fall below $60. And although the cost jumped slightly to 61 "greenbacks" per barrel, after the current agreement made on Saturday, it is unlikely to expect a new increase.

According to Bloomberg, the formal reason for the Saudis to increase production is the behavior of Iraq and Kazakhstan, which are allegedly dumping on the market and violating preliminary quotas.

At the same time, the publication notes that in this way Riyadh is bargaining with the Trump administration - he has stated his intention to "drill" in the US and reduce the price of oil and its derivatives.

It should be noted that the day before America agreed on a contract for the sale of arms to Saudi Arabia for 3.5 billion dollars - this includes missiles of various types.

This exchange of "curtsies" takes place against the background of Trump's future visit to Arab princes and sheikhs, scheduled for the coming days. The American leader, in addition to the Saudis, also intends to visit the UAE and Qatar.

Bloomberg notes that the cost of oil has already reached its lowest ceiling in 4 years. That could put Russian dictator Putin in a difficult position to financially fuel a war against Ukraine.

The Russian budget has a price of more than $70 a barrel, and a shortfall from the sale of this fossil, even with a shadow fleet operating to circumvent sanctions, could cause a negative economic impact in Russia - and that's putting it mildly.

So far, Moscow has not officially reacted to the Saudis' increased production levels. But Bloomberg analysts write that Putin badly needs oil revenues to continue his aggression against Ukraine. Perhaps he is counting on bargaining with Trump, about the end of the war on the oil field - the lifting of sanctions and OPEC+ production cuts in exchange for peace.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail [email protected]