Despite one of the tightest markets in recorded history, Goldman said the reported OPEC+ cut could be justified by the 40% decline in prices from their June peak and enabled by the lack of supply elasticity, given slowing shale activity and exhausted spare capacity.
"It may be as significant as the April 2020 meeting,” the source said, referring to when OPEC+ agreed record supply cuts of around 10 million bbl/d, or 10% of global supply, as the COVID-19 pandemic hit demand.
“There is a party or a party that, in the absence of the functioning of these gas pipelines, is able to sell more LNG at a higher price. This side is well known, it is the United States,” Kremlin spokesman Dmitry Peskov said.
Biden has warned oil companies not to use the storm as a pretext to raise gasoline prices, which spiked earlier this year after Russia's invasion of Ukraine.
OPEC has pumped 29.81 million bbl/d of oil this month, the survey found, up 210,000 bbl/d from August and the highest since April 2020.
“We may well see that the LNG markets in 2023 will be rather tight, maybe tighter than this year,” said Fatih Birol in remarks at the LNG Producer-Consumer Conference in Japan.
The U.S. Treasury Department also slapped sanctions on a network of companies involved in what it said was the sale of hundreds of millions of dollars worth of Iranian petrochemical and petroleum products to users in South and East Asia.
Acting Afghan Commerce and Industry Minister Haji Nooruddin Azizi said the deal would involve Russia supplying around one million tonnes of gasoline, one million tonnes of diesel, 500,000 tonnes of LPG and two million tonnes of wheat annually.
The energy crisis in Europe will last well into 2023 given stagnant global supply and the likelihood of increased competition for LNG, which Fatih Birol, the head of the International Energy Agency, warns could unleash a “wild west scenario.”