1 00:00:00,040 --> 00:00:02,519 Speaker 1: Well, as we've been discussing today, O PICK plus looking 2 00:00:02,520 --> 00:00:05,800 Speaker 1: to cut output by more than one million barrels a day. 3 00:00:06,160 --> 00:00:09,200 Speaker 1: The delegation due to meet on Wednesday in person for 4 00:00:09,240 --> 00:00:11,559 Speaker 1: the first time in two years. Joining us now to 5 00:00:11,600 --> 00:00:16,239 Speaker 1: talk some more about this, Stephen Stepchinski, Bloomberg's Energy reporter. So, Stephen, 6 00:00:16,600 --> 00:00:19,800 Speaker 1: we are anticipating a one million barrel per day cut. 7 00:00:19,960 --> 00:00:22,599 Speaker 1: So what's so pick plus saying here about the demand 8 00:00:22,640 --> 00:00:26,880 Speaker 1: picture and the wider macro economic environment. Well, they really 9 00:00:26,880 --> 00:00:30,080 Speaker 1: think that prices should be essentially higher. Um. They look 10 00:00:30,120 --> 00:00:33,360 Speaker 1: at what you're seeing in the markets in the futures market, 11 00:00:33,400 --> 00:00:38,040 Speaker 1: which is brent oil around UM eighty dollars versus what 12 00:00:38,080 --> 00:00:41,960 Speaker 1: you're seeing the physical market, and they think that prices 13 00:00:42,000 --> 00:00:45,720 Speaker 1: should and be represented higher. So cutting you one million, 14 00:00:45,760 --> 00:00:49,720 Speaker 1: one million barrels a day UM is one of their 15 00:00:49,840 --> 00:00:53,720 Speaker 1: ways of helping to boost prices and and show the 16 00:00:54,120 --> 00:00:58,920 Speaker 1: tightening situation. Now, of course, um, whether this will work 17 00:00:59,320 --> 00:01:04,240 Speaker 1: is another story endless. We're saying that, uh, the OPEC 18 00:01:04,240 --> 00:01:06,440 Speaker 1: plus may need to what we're output by at least 19 00:01:07,480 --> 00:01:10,880 Speaker 1: thousand barrels a day to stabilize prices. One million barrels 20 00:01:11,000 --> 00:01:13,160 Speaker 1: a day is more, but when you look at the 21 00:01:13,360 --> 00:01:16,120 Speaker 1: what's going to happen later this year with the procession 22 00:01:16,640 --> 00:01:20,399 Speaker 1: or with potentially lowering demand for for crude and oil products. 23 00:01:20,840 --> 00:01:24,720 Speaker 1: UM is not exactly clear how the market UM will 24 00:01:24,760 --> 00:01:27,240 Speaker 1: will take this. You know, we are up today, UM, 25 00:01:27,319 --> 00:01:30,119 Speaker 1: but it wouldn't be outside their own possibility if if 26 00:01:30,160 --> 00:01:33,959 Speaker 1: this were to disappear, if there isn't more action by 27 00:01:34,040 --> 00:01:37,400 Speaker 1: OPEC plus in the future, and that threatens to tighten 28 00:01:37,400 --> 00:01:41,840 Speaker 1: the market further and add more instability. Yeah. What's the 29 00:01:41,959 --> 00:01:45,000 Speaker 1: pressure being on Russia as the process of started to split? 30 00:01:46,040 --> 00:01:49,680 Speaker 1: You know, there has been pushed by UM countries in 31 00:01:49,720 --> 00:01:52,360 Speaker 1: the United States and others to try to allow for 32 00:01:52,480 --> 00:01:55,040 Speaker 1: Russian crew to continue entering the market now they're at 33 00:01:55,080 --> 00:01:57,280 Speaker 1: the beginning of the war UM, and in a few 34 00:01:57,280 --> 00:02:01,200 Speaker 1: months following the war, there were some discussions about totally 35 00:02:01,240 --> 00:02:05,320 Speaker 1: banning Russian crude imports in some countries are doing that UM, 36 00:02:05,360 --> 00:02:08,560 Speaker 1: but there are some views that having Russian fuel in 37 00:02:08,600 --> 00:02:12,799 Speaker 1: the market will help stabilize it now. They don't want 38 00:02:12,800 --> 00:02:17,480 Speaker 1: to let Moscow UH profit off of these you know, 39 00:02:17,560 --> 00:02:20,200 Speaker 1: high prices. So there have been discussions about a price 40 00:02:20,280 --> 00:02:24,280 Speaker 1: cap on on Russian crude imports, but nothing has really 41 00:02:24,280 --> 00:02:26,480 Speaker 1: come together, and Russia has warned that if there is 42 00:02:26,520 --> 00:02:30,160 Speaker 1: a price cut, will just cut oil exports altogether to 43 00:02:30,240 --> 00:02:34,280 Speaker 1: these customers. Is creating a very difficult situation, and it's 44 00:02:34,320 --> 00:02:36,840 Speaker 1: something that Open Plus will also like we need to 45 00:02:36,880 --> 00:02:41,160 Speaker 1: consider when they meet on Wednesday. Stephen very quickly thirty s. 46 00:02:41,560 --> 00:02:43,800 Speaker 1: This is the first in person meeting of OPI plus 47 00:02:43,800 --> 00:02:46,120 Speaker 1: in two years. Is it just a curiosity or is 48 00:02:46,160 --> 00:02:48,800 Speaker 1: the dynamic going to be different? No, I mean absolutely, 49 00:02:48,880 --> 00:02:50,600 Speaker 1: this is a different dynamic. Russia is going to be 50 00:02:50,680 --> 00:02:53,280 Speaker 1: there as well, um and and as well. It makes 51 00:02:53,280 --> 00:02:56,880 Speaker 1: sense that they're considering this big output cut. If it 52 00:02:57,000 --> 00:02:59,520 Speaker 1: weren't an in person meeting, they might may not be 53 00:02:59,560 --> 00:03:03,280 Speaker 1: considering such a large action. But I think that indicates 54 00:03:03,680 --> 00:03:09,160 Speaker 1: the weight of their decision. Alright. Steven Stepchinsky, Bloomberg's Energy Reporter, 55 00:03:09,240 --> 00:03:11,760 Speaker 1: thanks so much for joining us with a preview of 56 00:03:11,760 --> 00:03:12,840 Speaker 1: that I PICK Plus meeting.