OPEC+ warning shot – WSJ


Russia uses natural gas to punish Europe. Oil has not yet been weaponized in the same way, but talk of buyers imposing a price cap increases the risk that it will.

The Organization of the Petroleum Exporting Countries and its Moscow-led allies decided on Monday to cut production by 100,000 barrels a day from October. Since Russia’s invasion of Ukraine, the cartel, and Saudi Arabia in particular, had endeavored to maintain a broadly neutral stance between its main partners in Moscow and the West. Monday’s move, which goes against U.S. demands for increased production, may just be a response to uncertain global oil demand, but there’s also a more troubling interpretation: OPEC could send a wake-up call to Western efforts to cap Russian crude prices. will be subject to retaliation if they threaten the pricing power of the cartel.


Wj

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