OPEC+ agreement remains on track despite Russian invasion of Ukraine

The deal between OPEC+ oil producers, including Russia, has shown no fissures so far following Russia’s invasion of Ukraine, OPEC+ sources said, and the group is likely to maintain the planned production increase at a meeting next week. week, despite the fact that crude oil has exceeded US$ 100 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, meet on March 2 to decide whether to increase output by 400,000 barrels per day (bpd) in April.

OPEC+ was formed in 2016 to coordinate now-unwinding production cuts that were put in place to deal with an earlier supply glut and subsequent weakening in demand during the pandemic.

But Russia’s invasion of Ukraine came despite warnings from Washington and OPEC’s Gulf members are close allies of the United States, underlining that the producer group is at certain geopolitical crossroads.

However, a Russian oil source said on Wednesday that OPEC+ has held some informal talks during which Moscow explained its position on Ukraine and the other OPEC+ countries appeared to show a neutral stance.

A senior OPEC+ source dismissed the suggestion that it was the end of the group.

“Russia maintains a close collaboration with the Saudis, so the cooperation will continue.” the Russian oil source said. “As for the next meeting, no changes are expected for now.”.

Four other OPEC+ sources also said they did not expect changes to the deal. They cited reasons such as the need to keep OPEC+ cohesive and on a stable course and not to politicize the decision, as OPEC+ is not a political organization.

Russia and Saudi Arabia jointly chair OPEC+ and are its largest producers.

“Relationships won’t change because of high prices”, said one of the sources. “OPEC+ has an agreement and will keep it”.