HomeMediaLatest NewsAt the OPEC+ meeting, Moscow and Riyadh will extend the reduction of exports and production

At the OPEC+ meeting, Moscow and Riyadh will extend the reduction of exports and production

29 November 2023

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to RIA Novosti on the likely parameters and consequences of the OPEC+ member countries expected decision to balance the global oil market.

According to Alexey Belogoryev, at least Saudi Arabia and Russia should announce the extension of their voluntary production cuts by 1 million barrels and exports by 300 thousand barrels per day, respectively, for the first quarter of 2024.

“Throughout 2023, prices for reference grades of oil tend to reach $ 70 per barrel, but they are stopped every time by the "hand" of OPEC+. This pull–and-push game is very likely to continue in 2024," the analyst noted.

Alexey Belogoryev added that there are two main, quite traditional, factors pushing down prices on the oil market. The first is the expectation of a slowdown in demand, manifested in "obsessive" conversations about the recession in Europe and the decline in economic growth in China. The second is rather optimistic estimates of global production in 2024.

And, apart from the OPEC+ decision, the only significant factor that can support prices may be the risk to the maritime transportation of Russian oil through the Danish Straits, but it all depends on how seriously market participants are ready to take this, the expert concluded.

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