Wall Street Journal: Russia and Saudi Arabia are considering suspending the planned increase in oil production

The Wall Street Journal quoted “informed” sources as saying that Russia and Saudi Arabia are considering suspending the planned increase in oil production, after China announced that it would use its oil reserves to lower prices, similar to the United States.

The OPEC Plus group, which includes the two oil-producing countries, decided to increase production by 400,000 barrels per day, which is half the amount that the United States requested to be pumped into the markets to calm prices.

Earlier on Wednesday, the head of the International Energy Agency, Fatih Birol, urged OPEC to take “necessary” measures to help bring oil prices down to “reasonable levels”.

With his statements, Birol targeted Russia in particular, saying, “Russia can easily increase exports to Europe by about 15%… and reassure European gas markets significantly.”

Reuters quoted two sources as saying that the member states of the Organization of Petroleum Exporting Countries (OPEC) will hold a meeting early next month, and that the OPEC Plus group will hold a meeting on the second of December, to discuss the balance between demand and supply in the oil markets.

This comes after Washington and a number of countries resorted to using the strategic oil reserves in an unprecedented alliance, as China announced Wednesday that it will use its oil reserves in an effort to reduce oil prices.

On Tuesday, US President Joe Biden announced the launch of a “major initiative” to reduce oil prices by pumping 50 million barrels of the country’s strategic oil reserves, the largest amount to be withdrawn.

According to Bloomberg news agency, the OPEC advisory body expects that the withdrawal from the strategic petroleum reserve may lead to a significant increase in the global excess supply of oil, and may increase by 1.1 million barrels per day in January and February.

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