Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to RIA Novosti on the reasons and consequences of the OPEC+'s decision to extend accelerated oil production growth in July 2025.
According to him, if we ignore the "chaos" that US President Donald Trump has created in international trade, oil demand this year will still grow by less than one million barrels per day - by about 800-900 thousand. At the same time, the supply growth will be about twice as high."If OPEC+ continues to increase production, especially at such an accelerated pace, prices will inevitably fall to the range of 50-55 dollars per barrel by the end of the year, even if negative demand forecasts are not fully justified. But so far there are no signs of this, that is, demand remains weak," Belogoryev said.
The reasons why OPEC+ is doing this are, on the one hand, to preserve the agreement itself, and on the other, to increase its market share, which has declined during the cuts, due to a weak price war with other producers, the agency's source explained.
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