WEBVTT - Stephen Stapczynski on OPEC (Audio)

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<v Speaker 1>Well, as we've been discussing today, O PICK plus looking

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<v Speaker 1>to cut output by more than one million barrels a day.

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<v Speaker 1>The delegation due to meet on Wednesday in person for

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<v Speaker 1>the first time in two years. Joining us now to

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<v Speaker 1>talk some more about this, Stephen Stepchinski, Bloomberg's Energy reporter. So, Stephen,

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<v Speaker 1>we are anticipating a one million barrel per day cut.

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<v Speaker 1>So what's so pick plus saying here about the demand

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<v Speaker 1>picture and the wider macro economic environment. Well, they really

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<v Speaker 1>think that prices should be essentially higher. Um. They look

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<v Speaker 1>at what you're seeing in the markets in the futures market,

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<v Speaker 1>which is brent oil around UM eighty dollars versus what

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<v Speaker 1>you're seeing the physical market, and they think that prices

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<v Speaker 1>should and be represented higher. So cutting you one million,

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<v Speaker 1>one million barrels a day UM is one of their

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<v Speaker 1>ways of helping to boost prices and and show the

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<v Speaker 1>tightening situation. Now, of course, um, whether this will work

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<v Speaker 1>is another story endless. We're saying that, uh, the OPEC

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<v Speaker 1>plus may need to what we're output by at least

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<v Speaker 1>thousand barrels a day to stabilize prices. One million barrels

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<v Speaker 1>a day is more, but when you look at the

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<v Speaker 1>what's going to happen later this year with the procession

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<v Speaker 1>or with potentially lowering demand for for crude and oil products.

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<v Speaker 1>UM is not exactly clear how the market UM will

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<v Speaker 1>will take this. You know, we are up today, UM,

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<v Speaker 1>but it wouldn't be outside their own possibility if if

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<v Speaker 1>this were to disappear, if there isn't more action by

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<v Speaker 1>OPEC plus in the future, and that threatens to tighten

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<v Speaker 1>the market further and add more instability. Yeah. What's the

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<v Speaker 1>pressure being on Russia as the process of started to split?

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<v Speaker 1>You know, there has been pushed by UM countries in

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<v Speaker 1>the United States and others to try to allow for

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<v Speaker 1>Russian crew to continue entering the market now they're at

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<v Speaker 1>the beginning of the war UM, and in a few

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<v Speaker 1>months following the war, there were some discussions about totally

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<v Speaker 1>banning Russian crude imports in some countries are doing that UM,

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<v Speaker 1>but there are some views that having Russian fuel in

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<v Speaker 1>the market will help stabilize it now. They don't want

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<v Speaker 1>to let Moscow UH profit off of these you know,

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<v Speaker 1>high prices. So there have been discussions about a price

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<v Speaker 1>cap on on Russian crude imports, but nothing has really

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<v Speaker 1>come together, and Russia has warned that if there is

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<v Speaker 1>a price cut, will just cut oil exports altogether to

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<v Speaker 1>these customers. Is creating a very difficult situation, and it's

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<v Speaker 1>something that Open Plus will also like we need to

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<v Speaker 1>consider when they meet on Wednesday. Stephen very quickly thirty s.

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<v Speaker 1>This is the first in person meeting of OPI plus

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<v Speaker 1>in two years. Is it just a curiosity or is

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<v Speaker 1>the dynamic going to be different? No, I mean absolutely,

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<v Speaker 1>this is a different dynamic. Russia is going to be

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<v Speaker 1>there as well, um and and as well. It makes

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<v Speaker 1>sense that they're considering this big output cut. If it

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<v Speaker 1>weren't an in person meeting, they might may not be

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<v Speaker 1>considering such a large action. But I think that indicates

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<v Speaker 1>the weight of their decision. Alright. Steven Stepchinsky, Bloomberg's Energy Reporter,

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<v Speaker 1>thanks so much for joining us with a preview of

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<v Speaker 1>that I PICK Plus meeting.