Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Expert magazine on the OPEC+'s new strategy pushing it to further increase oil production.
Alexey Belogoryev questioned whether the OPEC+ decision was based on optimism about oil demand and global economic growth. However, in his opinion, this decision reflects the long-term vision of the oil market by the OPEC+ countries.
At the same time, the actions of the key parties to the OPEC+ agreement increase fears that a supply surplus may form in the oil market, Belogoryev adds. He also allowed oil prices to drop to $60 per barrel "or even lower.""From their point of view, the investment boom outside OPEC+ is starting to fade, and after 1.5–2 years, production by countries outside the agreement may reach the plateau. And the lower the prices will be in 2025-2026, the sooner this will happen. Therefore, OPEC+ expresses its readiness for a medium—term price "war", as if telling everyone: "Do not expect high prices, tighten your belts, and for now we will partially compensate for the lost profits by expanding our share," Belogoryev explained.
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