Well, as we've been discussing today, O PICK plus looking to cut output by more than one million barrels a day. The delegation due to meet on Wednesday in person for the first time in two years. Joining us now to talk some more about this, Stephen Stepchinski, Bloomberg's Energy reporter. So, Stephen, we are anticipating a one million barrel per day cut. So what's so pick plus saying here about the demand picture and the wider macro economic environment. Well, they really
think that prices should be essentially higher. Um. They look at what you're seeing in the markets in the futures market, which is brent oil around UM eighty dollars versus what you're seeing the physical market, and they think that prices should and be represented higher. So cutting you one million, one million barrels a day UM is one of their ways of helping to boost prices and and show the tightening situation. Now, of course, um, whether this will work
is another story endless. We're saying that, uh, the OPEC plus may need to what we're output by at least thousand barrels a day to stabilize prices. One million barrels a day is more, but when you look at the what's going to happen later this year with the procession or with potentially lowering demand for for crude and oil products. UM is not exactly clear how the market UM will
will take this. You know, we are up today, UM, but it wouldn't be outside their own possibility if if this were to disappear, if there isn't more action by OPEC plus in the future, and that threatens to tighten the market further and add more instability. Yeah. What's the pressure being on Russia as the process of started to split?
You know, there has been pushed by UM countries in the United States and others to try to allow for Russian crew to continue entering the market now they're at the beginning of the war UM, and in a few months following the war, there were some discussions about totally banning Russian crude imports in some countries are doing that UM, but there are some views that having Russian fuel in the market will help stabilize it now. They don't want to let Moscow UH profit off of these you know,
high prices. So there have been discussions about a price cap on on Russian crude imports, but nothing has really come together, and Russia has warned that if there is a price cut, will just cut oil exports altogether to these customers. Is creating a very difficult situation, and it's something that Open Plus will also like we need to consider when they meet on Wednesday. Stephen very quickly thirty s. This is the first in person meeting of OPI plus in two years. Is it just a curiosity or is
the dynamic going to be different? No, I mean absolutely, this is a different dynamic. Russia is going to be there as well, um and and as well. It makes sense that they're considering this big output cut. If it weren't an in person meeting, they might may not be considering such a large action. But I think that indicates the weight of their decision. Alright. Steven Stepchinsky, Bloomberg's Energy Reporter, thanks so much for joining us with a preview of that I PICK Plus meeting.