The IEA predicted an increase in oil prices due to a decrease in production by OPEC+ countries
[ad_1]
The decline in oil production targets announced by the OPEC+ group over the weekend could exacerbate market tensions and lead to higher oil prices amid inflationary pressures, the International Energy Agency (IEA) said.
“New OPEC+ cuts risk exacerbating these tensions (in the market.— “b”) and push oil prices higher at a time when strong inflationary pressures are hurting vulnerable consumers around the world, especially in emerging markets,” the report says. statement IEA.
The new significant cuts in oil production announced by the OPEC+ countries come at a time of heightened uncertainty in global oil markets and amid concerns about the outlook for the global economy, the IEA said.
Forecasts indicate that a significant supply shortage is possible from the second half of 2023.
April 2 Algeria, Iraq, Kazakhstan, Kuwait, United Arab Emirates, Oman, Russia and Saudi Arabia announced on the voluntary reduction of oil production. This is about decline by 1 million barrels per day from May until the end of the year, while Russia will extend for the same period the 500,000 barrels cut already begun in March.
Against the background of the OPEC + decision to cut production, oil prices grew, then began to correct. OPEC+ countries called its decision as a preventive measure to stabilize the market. In the United States, such a move was called inappropriate.
Read about the consequences in the publication “Kommersant FM” “Oil cut production”.
[ad_2]
Source link
