OPEC and Russia to Meet, With a Big Cut in Oil Output on the Table

But the meeting also comes amid swirling political intentions and economic factors.

In the push for higher oil prices, the Kremlin may be using OPEC’s de facto leader, Saudi Arabia, whose ministers want future cooperation from Moscow on energy matters, to make it more costly for the West to take measures against Russia.

“To the extent that prices rise, it will make it that much more challenging for Europe to proceed with its sanctions on Russian oil in December,” said Bhushan Bahree, an executive director of SP Global Commodity Insights.

A substantial cut in production would be a blow to the Biden administration, which has lobbied the Saudis to increase output. Saudi officials have expressed concern that oil demand could weaken because of a flagging world economy.

“They are looking for ways to surprise the market or deliver at least as much as the market is anticipating,” said Richard Bronze, the head of geopolitics at Energy Aspects, a research firm in London.

Expectations of a big move by the producing countries have in recent days helped lift futures prices of Brent crude, the international benchmark, to about $92 a barrel from about $83.

Article source: https://www.nytimes.com/2022/10/05/business/opec-russia-oil-output.html