HomeMediaLatest NewsOPEC+ will keep oil production at the current level

OPEC+ will keep oil production at the current level

11 January 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 on the prospects for OPEC+ in 2024 to the Prime Economic Information Agency.

Alexey Belogoryev believes that increased cuts are unlikely. He noted that the OPEC+ countries are close to exhausting their ability to reduce production. In addition, as in the past year, the voices of individual countries in favor of increasing it will increase. "But market conditions are likely to force OPEC+ to at least maintain current restrictions, otherwise it will be difficult to keep prices even in the range of 70-80 dollars per barrel," the expert added.

In his opinion, the effectiveness of the OPEC+ actions in 2024 will decrease due to a combination of three factors: market disbelief that the participating countries are ready for further serious production cuts, outstripping forecasts for oil production growth in the United States; as well as unfavorable changes in the balance of supply and demand in the global market for exporters, primarily due to the weakening of consumption growth in China.

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