OPEC+ countries that declared a voluntary oil production reduction from May until the end of 2023 want to stabilize the global oil market and have a surplus, Alexander Potavin from Finam told TASS.

Edited by |Hugh Gey
economy section
4 April 2023

    "From our point of view, the OPEC+ alliance simply wants to normalize in this way the global oil market, which had a surplus of about 0.5-0.7 mln barrels per day in the first and the second quarter of this year, which was manifested in low oil prices," the expert said.

Expert of InfoTEK analytical center Alexander Frolov shares this opinion. The logic of OPEC+ actions usually relies on the need of keeping the supply and demand basis on the oil market. The current situation creates uncertainty in the market.

"Actually, uncertainty can be considered the word of the year. Problems in the global economy, the potential spread of the banking crisis, and the extremely controversial evolution of oil demand in the European Union led to all appearances in the situation when the current production level can be considered excessive. It is fairly reasonable to slash production in order to return prices to an optimal investment corridor, as Russia has already done," Frolov added.

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