Jakarta, CNBC Indonesia – The delegation from the Organization of Petroleum Exporting Countries (OPEC) held a meeting with European Union (EU) officials on Monday, (11/4/2022). This meeting discussed the anticipation of shocks created by Russia on world oil supplies.
Reported by Reuters, the meeting discussed the worst consequences of world oil supplies when the Russia vs Ukraine war crisis did not end. EU officials are holding talks in Vienna with OPEC representatives amid calls to increase production, and as the EU considers possible sanctions on Russian oil.
As is well known, Russia is the 2nd largest oil producing country in the world. According to data from the British Petroleum (BP) Statistical Review of World Energy 2021, the largest petroleum producing country currently is the United States (US) which is recorded to produce 712.7 million tons of oil or 17% of the total global production in 2020.
Below the US is Russia, which is recorded as producing 524.4 million tons of oil or 12.6% of total global production in 2020.
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Source: BP- – |
Russia has an important role in the world’s crude oil industry. So, if the boycott of oil from countries led by President Vladimir Putin goes into effect, it is certain that world crude oil prices will skyrocket. Currently, world oil prices have reached US$ 120 per barrel.
“We could potentially see a loss of more than 7 million barrels per day (bpd) of Russian oil and other liquid exports, as a result of current and future sanctions or other voluntary actions,” OPEC Secretary General Mohammad Barkindo said, according to a copy of his speech seen by Reuters.
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