Speaker 1: Well, as we've been discussing today, O PICK plus looking
Speaker 1: to cut output by more than one million barrels a day.
Speaker 1: The delegation due to meet on Wednesday in person for
Speaker 1: the first time in two years. Joining us now to
Speaker 1: talk some more about this, Stephen Stepchinski, Bloomberg's Energy reporter. So, Stephen,
Speaker 1: we are anticipating a one million barrel per day cut.
Speaker 1: So what's so pick plus saying here about the demand
Speaker 1: picture and the wider macro economic environment. Well, they really
Speaker 1: think that prices should be essentially higher. Um. They look
Speaker 1: at what you're seeing in the markets in the futures market,
Speaker 1: which is brent oil around UM eighty dollars versus what
Speaker 1: you're seeing the physical market, and they think that prices
Speaker 1: should and be represented higher. So cutting you one million,
Speaker 1: one million barrels a day UM is one of their
Speaker 1: ways of helping to boost prices and and show the
Speaker 1: tightening situation. Now, of course, um, whether this will work
Speaker 1: is another story endless. We're saying that, uh, the OPEC
Speaker 1: plus may need to what we're output by at least
Speaker 1: thousand barrels a day to stabilize prices. One million barrels
Speaker 1: a day is more, but when you look at the
Speaker 1: what's going to happen later this year with the procession
Speaker 1: or with potentially lowering demand for for crude and oil products.
Speaker 1: UM is not exactly clear how the market UM will
Speaker 1: will take this. You know, we are up today, UM,
Speaker 1: but it wouldn't be outside their own possibility if if
Speaker 1: this were to disappear, if there isn't more action by
Speaker 1: OPEC plus in the future, and that threatens to tighten
Speaker 1: the market further and add more instability. Yeah. What's the
Speaker 1: pressure being on Russia as the process of started to split?
Speaker 1: You know, there has been pushed by UM countries in
Speaker 1: the United States and others to try to allow for
Speaker 1: Russian crew to continue entering the market now they're at
Speaker 1: the beginning of the war UM, and in a few
Speaker 1: months following the war, there were some discussions about totally
Speaker 1: banning Russian crude imports in some countries are doing that UM,
Speaker 1: but there are some views that having Russian fuel in
Speaker 1: the market will help stabilize it now. They don't want
Speaker 1: to let Moscow UH profit off of these you know,
Speaker 1: high prices. So there have been discussions about a price
Speaker 1: cap on on Russian crude imports, but nothing has really
Speaker 1: come together, and Russia has warned that if there is
Speaker 1: a price cut, will just cut oil exports altogether to
Speaker 1: these customers. Is creating a very difficult situation, and it's
Speaker 1: something that Open Plus will also like we need to
Speaker 1: consider when they meet on Wednesday. Stephen very quickly thirty s.
Speaker 1: This is the first in person meeting of OPI plus
Speaker 1: in two years. Is it just a curiosity or is
Speaker 1: the dynamic going to be different? No, I mean absolutely,
Speaker 1: this is a different dynamic. Russia is going to be
Speaker 1: there as well, um and and as well. It makes
Speaker 1: sense that they're considering this big output cut. If it
Speaker 1: weren't an in person meeting, they might may not be
Speaker 1: considering such a large action. But I think that indicates
Speaker 1: the weight of their decision. Alright. Steven Stepchinsky, Bloomberg's Energy Reporter,
Speaker 1: thanks so much for joining us with a preview of
Speaker 1: that I PICK Plus meeting.