HomeMediaLatest NewsThe Sunday's OPEC+ decisions will not affect oil prices

The Sunday's OPEC+ decisions will not affect oil prices

03 June 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 OPEC+ meeting results to the Prime news agency.

"The OPEC+ decisions taken the day before should not lead to a noticeable increase in oil prices in the world, but the alliance did not give obvious reasons to lower prices either," Alexey Belogoryev said.

"The gradual withdrawal from voluntary restrictions and its combination with the extension of mandatory quotas for a year and a half, on the one hand, balances the overall supply of OPEC+, on the other, allows us to probe the market's attitude to its gradual growth," the analyst added.

He also noted that the current decision allowed OPEC+ to send a clear signal to the market of long-term sustainability and coherence of its policies. At the same time, the alliance has enough flexibility to adjust the decision in the autumn if the balance of the global market becomes confidently surplus.

"But it's too early to talk about it," Belogoryev concluded.

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