OPEC Members Say Russian Oil Will Be Hard to Replace
April 12, 2022
There are several headlines today that have rallied energy prices overnight. First off OPEC members told the EU that it will be very difficult to replace Russian energy exports. OPEC Secretary-General Mohammad Barkindo said in the recent meeting, according to Reuters. “We could potentially see the loss of more than 7 million barrels per day of Russian oil and other liquids exports, resulting from current and future sanctions or other voluntary action.” “Considering the current demand outlook, it would be nearly impossible to replace a loss in volumes of this magnitude.”
Another headline pushing prices higher is the news that China has eased some of its strict COVID policies which should help increase some energy demand. But the outlook for China is hard to call as ships have been backing up outside ports because of the lockdowns. Much of this backlog has been because of limited workers to unload these ships. Traders will continue to monitor this situation.
There are also some reports this morning that Russia may have used chemical weapons. If this can be confirmed it could be the thing that finally pushes the EU to sanction Russian oil.
Most all the expectations for the CPI were for it to be up by 8.4% year over year. The number was just released this morning and it came in at up 8.5%.