Maxim Shevyrenkov, head of the Commodity Market Analysis Center at the Institute for Energy and Finance, commented to the TASS news agency on the impact of the OPEC+'s decision to increase production on world oil markets.
Maxim Shevyrenkov sees in the actions of OPEC+ the desire to solve three tasks at once. Firstly, according to the expert, the alliance is trying to fend off the impact of the escalating conflict in Yemen on the oil market. Shevyrenkov explains that the tension in the region is forcing oil tankers to extend their routes and go around Africa. And an increase in the OPEC+ production will avoid a possible reduction in supply on the European market due to longer supply routes.
Secondly, as the expert notes, a drop in oil prices below $67 per barrel may make shale oil production in the United States unprofitable, and OPEC+ will be able to take its place in the market.