Oil falls to the "bottom": what will OPEC+ do

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, made a comment to the publication "Finance.Mail.ru " on the prospects of changing OPEC+ oil production quotas.

Alexey Belogoryev believes that from the point of view of the medium-term balance, there are clear prerequisites for lower prices.

"The main trend in the market in recent weeks is new concerns about weak demand, including in China," he explained.

In addition, the probability of Donald Trump winning the US election is growing. This is seen as a negative signal for prices, since Trump can stimulate production growth in the United States (Joe Biden canceled production permits issued by Trump — ed.), and this will accelerate the decline in the cost of oil on world markets.

As a result, weak demand in China, one of the largest oil consumers, and politics are putting pressure on prices, but they are supported by a temporary decrease in commercial reserves in the United States, and risks to oil production in Canada due to forest fires. In these circumstances, according to the expert, OPEC + is unlikely to change production now, given how difficult it was to reach a compromise on quotas in June.