HomeMediaLatest NewsOPEC+ may cut oil production. What will happen to prices?

OPEC+ may cut oil production. What will happen to prices?

04 October 2022

Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department

Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented to the Sputnik radio station on the expectations of a decrease in oil production by the OPEC+ countries.

"If the reduction is by one million barrels, as previously announced, this means absolutely nothing for Russia, because, in fact, Russia will continue to produce as much as it did. If the reduction is by two million barrels, this will naturally affect Russian production. For us, this is not critical now, because we are waiting for the start of the entry into force of the European embargo on oil supplies to the European Union. Thus, we will simply, let's say, legitimize the expected reduction in oil production and exports in our country due to the European sanctions," he said.

The expert predicted how the reduction in production will affect the cost of oil.
“In this situation, the price of oil, of course, will go up. If an ambitious decision is made to cut production by two million barrels, then the price of oil will stay in the range of about $95-$105,” Alexey Gromov 
Gromov Alexey I. Principal Director on Energy Studies, Head of the Energy Department
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