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Potential Long Term Global Supply Problems due to Russia Sanctions: FGE

OIL

Sanctions on Russian oil could curtail production growth causing long term global supply problems according to Fereidun Fesharaki from FGE Consultancy on Monday.

  • Russia can maintain production at around 10 to 11mbpd but Western sanctions could restrict 2mbpd of future growth.
  • Fesharaki sees OPEC behaving differently than in the past and has shifted focus to monetising oil resources before demand peaks with US shale oil growth no longer a concern.
  • He saw "a desire to keep oil prices above $80 a barrel and a willingness to go over $100 if the market tightens".

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