The Organization of the Petroleum Exporting Countries (OPEC) may exclude Russia from the oil-production deal. Because the European embargo will undermine its ability to produce more oil.
Source: OPEC members
Some OPEC members are exploring the idea of ending Russia’s participation in the oil deal. This means that Russian oil on the world market can be replaced by Saudi Arabia, the UAE and other producers.
Sanctions and a partial ban on Russian oil imports threaten Russiaʼs ability to extract raw materials. According to their estimates, by the end of the year, oil production in Russia will be reduced by 8%, so OPEC may redistribute quotas. This will allow other producing countries to produce much more oil.
Russia, one of the world’s three largest oil producers, agreed with OPEC and nine non-OPEC nations last year to pump more crude each month, but its output is now expected to fall.
In the future, Russia will be able to sell only 1.75 million of the previously exported 3 million barrels per month, which will lead to a drop in revenue of $ 3.4 billion immediately after the entry of sanctions into force. At the time of the full embargo, this figure will increase to $ 4.5 billion a month.
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