Business News Asia
WTI crude oil futures closed in the red on Tuesday (May 31). According to reports, OPEC plans to exclude Russia from the OPEC+ agreement after some Western countries boycotted Russian oil.
- WTI crude futures were down 40 cents, or 0.4%, at $114.67 a barrel.
- BRENT crude futures were up $1.17, or 1%, at $122.84 a barrel.
Earlier in the day, WTI oil prices rose more than 3% on news that European Union (EU) leaders had decided to suspend more than two-thirds of Russian oil imports. This is to cut off the huge financial resources that Russia has used to wage the Ukraine war.
It is reported that some OPEC members are considering the possibility of excluding Russia from the OPEC+ production agreement, as Western sanctions are affecting Russian oil production.
Russia’s exemption from the OPEC+ production agreement will pave the way for Saudi Arabia and the United Arab Emirates, as well as other OPEC members, to increase their oil production to meet OPEC+ production targets and compensate for lost Russian production capacity.
In the past OPEC+ has stayed true to its original deal, adding only 432,000 barrel per day of oil output, although the United States and several other oil-importing countries have called for OPEC+ to increase production more than current levels.
Last year, Russia, one of the world’s three largest oil producing countries, agreed with OPEC and non-OPEC countries to increase crude oil production on a monthly basis. But this year, Russian production has fallen by about 8%.
Investors are also paying attention to the weekly report on U.S. crude oil inventories, which the EIA will publish tomorrow.
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