Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Infotech Internet portal on the potential dynamics of world oil prices after the decision of Russia and Saudi Arabia to extend voluntary restrictions on oil supplies until the end of 2023.
The price of oil in the coming weeks may rise to $100 per barrel, Alexey Gromov @IEFnotes said.
This will be a consequence of the decision of Saudi Arabia and Russia to extend their voluntary commitments to reduce oil production and supplies until the end of the year. The stakes in the oil game have once again been raised, the expert is sure.
The expert explained that the further behavior of traders in the market will strongly depend on the consumer countries, in particular, on the United States. If the price spiral starts to unwind and the oil price growth is stable, then the US presidential administration may start playing further, once again using the tool of selling oil from the country's strategic reserve. Although the possibilities of the United States in this regard are not so limitless.
"Moreover, I have no confidence that this decision will be the last. The US will have to react, otherwise, amid the gradual recovery of the Chinese economy, we may see an increase in world prices to $ 100 per barrel in the coming weeks," he said.
"At the end of last year, in 10 months, they sold about a third of their strategic reserve and planned to replenish these reserves. However, taking into account the current situation, as well as the start of the election race, I think that if prices accelerate, they will return to this practice again," Gromov said.
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