The OPEC+ decisions on oil production restrictions

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented on the OPEC+ decision to postpone a phased increase in oil production for another three months to RIA Novosti and the Prime news agency.

"The OPEC+ participants acted in the most expected way, so this decision is already embedded in oil prices, and it will not significantly affect them. It is possible that the third will be followed by a fourth postponement (the start of an increase in oil production after the rejection of voluntary cuts of 2.2 million barrels per day - ed.), but by May-June 2025, the OPEC+ countries will still have to make some kind of long-term decision," Alexey Belogoryev said.

According to him, OPEC+ is now in a difficult position, since the production restrictions imposed by OPEC + in recent years were not designed for such a long existence, and many participating countries, for various reasons, are not ready to continue to support them in such a volume. The alliance can only be helped out of this state by a decrease in exports and production in Iran and an increase in the geopolitical premium associated with Iran and, in general, with the Middle East, he believes.

"By March, when OPEC+ will have to make a decision next time, Trump's policy may become clearer. So far, the OPEC+ countries have taken a wait-and-see position," Belogoryev said.