Meeting in Germany, the G7 sounds -once again- at the end of the recess. The international group has asked oil-producing countries to increase their production to help lower prices, a month after OPEC+’s decision to drastically reduce its extraction of black gold.
Statements that echo the last rally in early September. Christian Lindner, the German Finance Minister, underlined the collusion between OPEC+ and Russia: the cartel’s restrictive policy serves the interests of Moscow. “Russia is currently making huge profits from the export of raw materials such as oil and we want to firmly oppose this,” the liberal urged.
The Europeans are torn between continuing to supply themselves with Russian hydrocarbons – the embargo on imports is not yet in force – and the economic sanction of the Moscow-led invasion of Ukraine.
The United States, pressured by the price of a barrel – around 98 dollars this Friday – is also leading a crusade with OPEC + to win its case. Joe Biden went so far as to call Mohammed bin Salman, the crown prince of Saudi Arabia, to obtain from Saudi Arabia a one-month postponement of production restrictions, to approve the course of the mid-term elections scheduled for November 8.
Russian oil price spike
At the same time, the G7 is advancing its plan to cap the price of Russian crude, whose price has ironically soared due to Western sanctions.
In September they announced their intention to proceed with this measure, which was complex to implement, and called for the creation of a “broad coalition.” To finalize the device, strongly criticized by Moscow, the West must determine in particular at what level the ceiling must be, which must be above the cost of production, so that Russia maintains its interest in selling its oil on the market.
Source: BFM TV
