Reuters is reporting on the matter, citing sources familiar with the thinking of the bloc. It is said that Saudi Arabia and UAE could pump significantly more but would only do so if a supply crisis worsened this winter. One of the sources said that:
"With possibly no gas in Europe this winter, with a potential price cap on Russian oil sales in the New Year, we can't be throwing every barrel on the market at the moment."
Adding that "the only time we can prove we have more spare capacity is when it comes to a long-lasting crisis".
As mentioned yesterday, Saudi Arabia and UAE are the two real members in the bloc with any real spare capacity but even they are not going to be increasing their quotas for the time being. The strategic move by both countries isn't anything surprising as they are more than happy to keep the status quo and see oil prices maintain near $100.
In effect, the decision to raise output by 100k bpd yesterday was very much a 'goodwill gesture' to appease Biden. Though if you'd ask me, that reads more like a slap in the face.
/Crude oil
