The OPEC+ decision to increase oil production

Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented to Prime News agency on the OPEC+'s decision to begin gradually easing restrictions on oil production from April 1, 2025.:

"The Alliance understands that further pressure on countries to strictly comply with current restrictions is a dead-end strategy that may cause discontent among the participants. Therefore, the fact that OPEC+ has decided to "open the taps" means that it shows its flexibility, understands that countries need to earn more against the backdrop of a falling market," he said.

According to Gromov, since last year it has been noticeable that the discipline of some OPEC+ countries has become worse for various reasons. This is due, firstly, to the fact that oil prices in the world are systematically declining and fluctuate around $ 70 per barrel, forcing Russia and Iraq to sell more "black gold" to replenish the budget. In addition, it is difficult for Kazakhstan and Iraq to contain production growth, as they employ many foreign companies that are not legally subject to OPEC+ deals.

"But at the same time, the alliance continues to keep its finger on the pulse of the global oil market, suggesting the possibility of returning to restrictions if the situation develops unfavorably for exporters," the expert added.