Institution: OPEC+ will not increase production to offset the impact of U.S. sanctions on Russia

Analysts from the Royal Bank of Canada (RBC), led by Helima Croft, pointed out in a report that member countries of OPEC+ with idle production capacity are unlikely to be willing to increase output in response to U.S. sanctions against Russia, the co-chair of the organization. It remains unclear whether Trump will impose the secondary sanctions he has threatened against Russian energy buyers, but market participants "should not expect OPEC to immediately fill" any potential supply reductions. "The cooperation between Gulf Cooperation Council (GCC) oil-producing countries and Russia remains strong and is not limited to the energy sector." "Almost all OPEC+ countries want to avoid getting involved in the escalating dispute between Washington and Moscow." The eight OPEC+ countries participating in the restoration of the 2.2 million barrels per day production cut may choose to restore the remaining 549,000 barrels per day supply in September, after which they may pause further increases