How much will oil prices rise after the OPEC + decision to cut production

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, gave a commentary to the Komsomolskaya Pravda radio station on the prospects for an increase in world oil prices after the decision of the OPEC + member countries ministers to reduce oil production from November 2022.

Alexey Gromov said what would happen to oil prices after the OPEC + decision to cut production immediately by 2 million barrels per day.

According to him, there will be no sharp rise in prices on the world market, because many OPEC+ countries do not develop the quota of permitted production that they have in accordance with the terms of the agreement.

"And this unused volume in fact of the quota already exceeds one million barrels. Therefore, if OPEC + said about a reduction in production by one million barrels, it would be implemented only on paper and the market would not notice it. And 2 million barrels means that "Saudi Arabia will definitely cut more, Russia will also cut more, and this, of course, will affect the market. But still, the effect will be quite mild, prices will return to a comfortable range for the OPEC + countries from 90 to 100 dollars per barrel," the expert believes.