The decision of the OPEC+ countries to leave the terms of the deal on oil production unchanged will stabilize the market and strengthen quotes at the current level, experts interviewed by Izvestia believe.
On February 2, during a ministerial meeting, the OPEC+ countries decided to stick to the plan adopted in July 2021 to gradually increase oil production by 400,000 barrels per day. The increase in production will occur until the complete cancellation of the reduction of 5.8 million tons.
According to Igbal Guliyev, Deputy Director of the International Institute for Energy Policy and Diplomacy, Advisor to the Center for Sustainable Development and ESG Transformation of MGIMO, the decision to keep the terms of the deal unchanged will stabilize the market and strengthen oil quotes at the current level. Against the backdrop of negotiations in OPEC +, oil showed an increase in price. So, on February 2, at 10:00 Moscow time, the price of Brent black gold amounted to $89.3 per barrel, by 16:30 Moscow time it increased to $90 per barrel, and at 19:00 Moscow time it again rolled back to $88.5.
Igbal Guliyev believes that the OPEC + countries did not take risks and increase the growth rate of oil production, since the problem with the spread of coronavirus has not yet been resolved in the world and there are still no guarantees for a quick recovery of the world economy.
“The market welcomed the decision positively, it is beneficial to all participants in the organization, as it will strengthen quotes. But most of all, it will be beneficial to the OPEC+ countries, which are not yet able to increase production to the quotas determined by the deal,” said Natalya Milchakova, deputy head of the Alpari IAC.
Read more in the exclusive Izvestia article:
Cartel measures: how the decision of OPEC + to keep the deal will affect the market
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
