(Bloomberg) — The global oil market so far does not call for any additional steps from producers amid the conflict between Israel and Iran as the tensions have had only a limited effect on prices, according to Russia’s President Vladimir Putin.
Many OPEC members, including the Gulf states, are able to step in and increase their production if needed, yet “as a rule, we do that in a coordinated manner,” Putin said Friday when asked if Russia is ready to hike output to support the market amid the Mideast conflict.
“For now, no immediate response is required” from the alliance of the key crude producers, Putin said at the St. Petersburg International Economic Forum. The Organization of the Petroleum Exporting Countries and its allies, including Russia, will continue to monitor the market conditions, he said.
The global oil market has had a turbulent week, with futures swinging in a range of around $8, and volatility spiking to the highest since 2022, as Israel and Iran have been exchanging multiple strikes. However, oil slumped after US President Donald Trump signaled a decision on whether to strike Iran will be made within two weeks.
A report from Reuters that Iran is ready to discuss limitations on nuclear enrichment, but will not consider stopping entirely, also eased concerns over an imminent US strike.
Eight OPEC nations have raised their production higher than expected for three consecutive months. They are set to hold the next video conference on July 6 to consider making a further increase in August. Saudi Arabia is eager to make more super-sized hikes in order to recoup market share as quickly as possible, people familiar with the matter said earlier this month.
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