HomeMediaLatest NewsA possibility of easing the OPEC+ oil policy

A possibility of easing the OPEC+ oil policy

02 April 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 to RIA Novosti on the balance in the global oil market and the likely policy of OPEC+ in 2024.

"There are no good reasons for easing the policy yet. But this issue can be raised in June based on verified statistics for the first third of the year. I think that the average annual price of $ 80-85 per barrel of Brent (the main range of most current consensus forecasts) is quite comfortable for the OPEC+ member countries. With the current balance in the market, hardly anyone seriously expects a higher price level," Alexey Belogoryev said.

The fact that daily prices have been steadily holding above $ 80 per barrel since the beginning of February confirms for OPEC+ the correctness of the cuts in the first quarter, he explained, although the decline in oil production and production of petroleum products in the United States and increased tensions in the Middle East were also important factors.

"The current geopolitical "premium" in oil prices can be estimated at around $ 3 per barrel, which is historically quite a bit, but enough so that prices do not fall below $ 80," the expert added.

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