Russia-Ukraine Crisis: Canada To Increase Oil Export By 5 Percent To Replace Russian Oil

The report also says that questions have been raised about this move as Canada does not have the infrastructure to export the rapid increase of production.

New Delhi: Amid the ongoing crisis between Ukraine and Russia, Canada has stepped up to increase the oil exports up to 5 percent to help shortages faced by allies after Moscow energy companies were shunned. Canada is the world's fourth-largest oil producer.

"Our European friends and allies need Canada and others to step up. They're telling us they need our help in getting off Russian oil and gas in the short term," Resources Minister Jonathan Wilkinson said in a statement according to an AFP report. 

Wilkinson said that Canada is "uniquely positioned to help" and that Ottawa will work with international partners to support international energy partners. He was a part of a ministerial meeting of the International Energy Agency (IEA) in Paris on Thursday. 

"In response to requests for assistance from allies to address supply shortages due to the conflict in Ukraine, Canadian industry has the capacity to incrementally increase its oil and gas exports in 2022 by up to 300,000 barrels per day with the intention of displacing Russian oil and gas," he was quoted by AFP.

The report also says that questions have been raised about this move as Canada does not have the infrastructure to export the rapid increase of production. Ben Brunnen of the Canadian Association of Petroleum Producers said that a short term increase in production could pose a risk for the industry.

According to the AFP report, a government source revealed while Canada can't control where the oil goes but once it is in the market it can increase the supply for the European allies.

Meanwhile, the IEA last week urged governments to urgently implement measures to cut global oil consumption following supply fears stemming from Russia's invasion.

The Ukraine and Russia crisis has sharply raised the prices of oil and led major economies to sanction Russia by banning imports of its oil. The report stated that oil prices fell earlier Thursday, with Brent North Sea crude, the main international benchmark, dipping under $120 per barrel to trade at around $116. This was because traders believed that European Union will impose sanctions on Russian oil.