HomeMediaLatest NewsTo increase production so as not to miss the market: has OPEC+ changed its mind?

To increase production so as not to miss the market: has OPEC+ changed its mind?

06 June 2024

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 the Oil and Capital magazine on the current OPEC+ policy at the global oil market.

"The OPEC+ exporters want to partially regain their lost positions, so from October they will test the market for a smooth increase in supply from their side. If the reaction is too sharp or there are problems with demand, then there will be an adjustment.

In general, the vector of OPEC+ policy is quite expected. The cartel has confirmed its long-term policy of maintaining basic restrictions. Still, so far we are talking about an increase (and it will be smooth throughout this year) by 0.5 million b/d. By the way, this is the same volume that has already been withdrawn from the market this year. The remaining restrictions, which were in effect until 2024, have been extended. This is a clear signal from the cartel that it will smoothly cancel production cuts and at the same time increase supply without sudden movements," the expert says.

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