Oil news out of Russia overnight, Greg had it as it was breaking, link here ICYMI.
Russian President Vladimir Putin said the OPEC+ group of leading oil producers was increasing output slightly more than agreed, but:
- "Not all oil-producing countries are in a position to ramp up production quickly"
Putin also provided some broader background comments, none of this is new but a useful recap if you need:
- "From 2012-2016, investment in oil production totalled around $400 billion/year, and in recent years, even before the pandemic, this decreased by 40%, and now it amounts to $260 billion"
- said that investment cycles for energy projects are 15-30 years
Underinvestment is contributing to the recent rise in prices for oil.
Oil price update: