Russia confirmed that it will drastically reduce military operations in kyiv, at the end of negotiations in Turkey to stop an escalation of the conflict. The Russian defense minister said that his country would reduce operations not only in the capital but also in Chernihiv and confirmed that there could be a meeting between presidents Volodymyr Zelensky and Vladimir Putin.
In this framework, oil has been involved in oscillations as liquidity decreases in the face of enormous market volatility. The possibility of a ceasefire in Ukraine allays fears of a lack of supply due to the blockade of rural crude oil, although the results are still uncertain. Also, according to the Swiss bank Julius Baer, it is likely that the current restrictions in China are temporarily affecting its demand for oil, which helps the market to absorb the loss of Russian supplies, and that the expectations for an increase in drilling activity in the United States is also helping to contain the rises.
For its part, OPEC+ will meet on Thursday to discuss its supply policy for May, although for now its members have signaled that they will stick to their existing plan and push for a modest increase in production. In this context, the energy ministers of Saudi Arabia and the United Arab Emirates have assured this Tuesday that their countries have done their part to balance the crude oil markets: “We have one mission and only one mission, which is to stabilize the market. We cannot politicize or bring politics to the organization that is having that debate; our goal is to calm the market,” said UAE Energy Minister Suhail al-Mazrouei.
OPEC+ has been under mounting pressure to pump more crude since Russia, one of the group’s biggest producers, invaded Ukraine on February 24, and Western nations enacted sanctions in response that have cut Russian oil exports.
Source: Ambito
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