Russian Oil supply limited despite sanctions relief – Commerzbank
Even with potential US sanctions easing, Russian Oil output is unlikely to surge, as OPEC+ production limits and near-capacity operations constrain any significant increase, Commerzbank's commodity analyst Carsten Fritsch notes.
OPEC+ caps hinder significant output gains
"However, even if US sanctions were eased, a significant increase in Russian Oil supply would not be expected, as Russia is bound by OPEC+ production targets. It is conceivable that Russian Oil production could close the current gap to the agreed OPEC+ production volume."
"According to the latest figures from the IEA, this would mean an increase of 200,000 barrels per day, while OPEC and S&P Global Commodity Insights estimates put the increase at around 100,000 barrels per day."
"As Russia is likely already producing close to its capacity limit, a significant increase in production is hardly possible if OPEC+ decides to further raise production targets next year. According to IEA estimates, Russia's production capacity is already below the agreed production level."
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
