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OPEC + deal will not fix anything in the global oil market

OPEC + deal will not fix anything in the global oil market 

New OPEC + deal will not be able to improve the situation on the world oil market until COVID-19 is defeated. This opinion was expressed by the expert on the oil market from Saudi Arabia Fadil al-Buinein.



“Despite the historical agreement between oil producers to reduce production by 9.7 million barrels, nevertheless less, the volume of reduction is much less than the volume of reduction in demand. The latter is estimated at 25 million barrels per day, ”an analyst told RIA Novosti .

“ Therefore, the decline in production did not seriously affect oil prices. Especially when you consider that the global economy continues to fail because of the coronavirus. Therefore, I exclude the rise in oil prices until economic conditions return to their circles and oil demand increases, “al-Buinein is convinced.

” To correct the situation in the hydrocarbon market, it is necessary to eliminate the cause that led to it. And this is the spread of coronavirus. And stabilization of oil prices is largely associated with the advent of vaccines and treatment, which will allow resuming economic activity in the world, ”the expert concluded.

The OPEC + Alliance will reduce production only partially

In addition, in May, the OPEC + Alliance will reduce oil production by only 70% of the planned volume of 9.7 million barrels per day. This was stated by Deputy Director for Energy at the Institute of Energy and Finance Alexey Belogoryev.

The starting point for reducing production in all countries except Russia and Saudi Arabia was October 2018, not the current level. However, it would be more correct to compare the reduction with the first quarter of 2020.

“In May, according to our institute, the reduction will be about 70% – about 4.3–4.4 million barrels per day compared with the first quarter of 2020. Taking into account the G20 countries (USA, Canada, Norway, Brazil), the total reduction in May may reach 6.2 million barrels, in June – 10.9 million barrels per day, ”Belogoryev said. : ///

Record The OPEC + deal will not fix anything on the world oil market first appeared TEKNOBLOG .

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