Three countries are expected to be 'most successful' if oil costs reach $100

April 10, 2023: The surprise output slashes by OPEC and its allies sent oil prices rallying, and analysts stated major oil importers, including India, Japan and South Korea, feeling pain if prices reach $100 per barrel, as some have indicated.

On Sunday, OPEC+ reported a production slash of 1.16 million barrels each day, in a move that oil needs were not expecting.

“It’s a tax on every oil to the economy,” stated Pavel Molchanov, managing director of private investment bank Raymond James.

“It’s not with the U.S. that would feel the pain from $100 oil; it would be the countries with no domestic petroleum resources such as Japan, India, Germany, and France, to name a few of the huge examples,” Molchanov stated.

The voluntary slashes by countries in the oil cartel are set to begin in May and last in 2023. Saudi Arabia and Russia are trimming oil production by almost 500,000 barrels per day until this year. At the same time, other OPEC members such as Kuwait, Oman, Iraq, Algeria and Kazakhstan also decrease output.

Brent crude futures last traded 0.57% increased at $85.41 a barrel, as the U.S. West Texas Intermediate futures are standing at 0.5% at $81.11 per barrel.

“The regions most reached by the oil supply slashes and related crude price increase are those with an increased degree of import reliance and a high share of fossil fuels in the primary energy systems,” said the director of Eurasia Group, Henning Gloystein.

“That means the most exposed are import-reliant emerging market industries, particularly in South and Southeast Asia, and the super-import dependent industries of Japan and South Korea.”