All Bark and No Bite?
April 14, 2023 Will the OPEC+ production cut impact Russian crude oil flows?
OPEC+ unexpectedly decided on Sunday, April 2nd to cut production by nearly 1.7 Mb/d (aptly named by the IEA: “OPEC+ Sunday Shocker”). By Monday, oil prices had increased by about 6%. In addition to the impact on international benchmark prices such as Brent, WTI and Dubai, it also pushed the price of Russian Urals crude up. As a result, Urals pricing jumped above the G7 imposed price cap of $60/barrel. If Urals pricing is maintained at these elevated levels (or goes even higher), the tanker industry will start to wonder about the implications for Russian oil flows.
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