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OPEC Secretary General Mohammad Barkindo
OPEC Secretary General Mohammad Barkindo said that it was not possible for other producers to replace Russian supply, as the group faced continued demands to raise output.
There is not enough spare production capacity in the world to compensate for the possible lost supply from Russia, Barkindo said at the technical meeting of the Organization of the Petroleum Exporting Countries and allied producers (OPEC+).
The European Union proposed, on May 4, a gradual ban on imports of Russian oil by the end of this year, after countries such as the United States, Canada and the United Kingdom passed a similar decision earlier this year after Russia’s invasion of Ukraine.
Barkindo also explained that the lockdown measures in China due to the spread of COVID-19 affects the demand for oil. He noted that China is likely to face the biggest shock in terms of demand for crude since the early days of the pandemic in 2020.
OPEC+ is scheduled to hold a meeting on oil production policy today, May 5, amid expectations that the group will maintain its policy of gradual increase in supplies, and settle for a raise of 400,000 barrels per day in June.
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