Alexey Gromov, Principal Director on Energy Studies of the Institute for Energy and Finance, commented on the expected dynamics of world oil prices to the Sputnik radio station.
In an interview with Sputnik radio, Alexey Gromov expressed the opinion that the main driver of oil price dynamics at the moment is the balance of supply and demand.
"The current situation with oil prices shows that the conditions for a rapid increase in demand in China were overestimated by market players at the very beginning of the year. China will obviously consume less oil this year than expected, and this is reflected in current oil prices. Against this background, we see that the market has developed a stable balance between supply and demand, that is, the reduction in demand growth expectations in China is balanced by the additional increase in production, which was announced by the countries participating in the OPEC + agreement. The EU embargo against Russia will, in fact, only come into effect starting from December 2022. All this somewhat calmed the prices on the market,” he said.
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