OPEC is prepared to raise production further by rolling back its oil output cuts if necessary to address any market shortfall after the US imposed new sanctions on major Russian oil firms, Kuwait’s oil minister said on Thursday.
“I expect that any decision to impose sanctions will certainly have a positive impact on prices,” Kuwaiti Minister Tariq Al-Roumi said in response to a question from Reuters.
Al-Roumi added that he anticipates a shift in demand towards the Gulf and the wider Middle East as a result of the sanctions. “We are seeing signs now,” he said.
Kuwait is among seven OPEC+ members that have been gradually increasing oil production after years of output cuts aimed at supporting the market under the group’s agreement, which includes the Organisation of the Petroleum Exporting Countries, Russia, and several smaller producers.
The alliance, which accounts for around half of global oil supply, has reversed course this year to reclaim market share, responding in part to pressure from President Trump to boost production and help keep petrol prices in check.
OPEC+ has raised its oil output targets by more than 2.7 million barrels per day this year, equivalent to about 2.5% of global demand.
At its meeting on Oct. 5, the group announced that it would increase oil output from November by a further 137,000 barrels per day.
US President Donald Trump has announced sanctions on Russia’s largest oil companies, Lukoil and Rosneft, marking Washington’s toughest measures against Russian businesses since Moscow’s invasion of Ukraine.
Rosneft and Lukoil together account for an estimated 3.1 million barrels per day (mbpd) of exports, nearly 80% of Russia’s total crude shipments of 3.8–3.9 mbpd. The sanctions have sparked supply concerns, resulting in an immediate 5% jump in crude prices to $65.6 per barrel.
While the intent of the sanctions is to curb Russian revenue flows, it could be a potential glut in the global market as trade routes get disrupted and refiners scramble to find alternative sources.
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