Nine countries, which are parties to the OPEC+ agreement, will start a voluntary reduction of oil production starting from May 2023, which will last until the end of this year. It is noted that the total volume of production cuts should be at the level of 1.66m bpd. Previously similar measures have caused an increase in the price of gasoline in the United States.
inosmi.ru
In a statement released on the OPEC website, it said the preventive measures to reduce oil production were aimed at maintaining stability in the oil market.
Algeria, Iraq, Kuwait, Kazakhstan, Saudi Arabia, UAE, Oman, Gabon as well as Russia which had extended the production cuts of 500kb/d from February’s average until the end of the year. The total production cut should amount to 1.66m bpd.
The voluntary reduction of oil production will be in addition to the OPEC+ plan, already in place since November last year, which was aimed at reducing black gold production by 2m bpd. By reducing oil production, OPEC+ is acting in its own interests, which are dictated not only by economic factors, says Oleg Zhuravlev, General Director of VORMHOLS Introduction, an oil and gas technology company. He told that to Izvestia.
According to the expert, the rise in prices will depend primarily on rising interest rates in the US and Europe, which will continue to restrain business activity. In addition, he added that there is a high risk of a 10-15% increase in petrol prices in the United States.
OPEC+ is trying to keep prices from falling, due to a possible stagnation of the global economy. However, Russia, irrespective of changes in oil production volumes and changes in oil prices, continues to receive approximately the same amount from sales of this energy resource.
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