Abu Bakr El-Deeb, a researcher in international relations and political economy and an expert in energy markets in Cairo, confirmed that the decision of Saudi Arabia and 7 OPEC + countries to further reduce oil production restores balance to the market.
Al-Deeb added to “Okaz” that the announcement of the Kingdom of Saudi Arabia and several countries in the “OPEC +” alliance an additional voluntary reduction in oil production amounting to 1.649 million barrels per day, starting from next May until the end of 2023, protects prices from collapsing, as the Kingdom will With a voluntary reduction in its oil production of 500,000 barrels per day, in coordination with a number of countries participating in the declaration of cooperation among the members of “OPEC +”, it is expected that this measure will support the stability of oil markets, which was agreed upon by the coalition countries in the 33rd ministerial meeting held in October 5, 2022.
The researcher pointed out that Russian Deputy Prime Minister Alexander Novak announced today (Sunday) that his country will extend the oil production cut by 500 thousand barrels per day until the end of the year, and thus Russia has extended the production cut twice since last February, while the UAE Minister of Energy and Infrastructure Suhail said Al-Mazrouei said that his country will voluntarily reduce its oil production by 144 thousand barrels per day, starting from next May until the end of this year, as well as Kuwait, the Sultanate of Oman, Iraq and Algeria, which are decisions aimed at taking precautionary measures to face the challenges facing the global oil market, and to achieve a balance between supply And demand, expecting oil prices to rise to levels higher than $120 a barrel before the end of the current year 2023, due to the rise in China’s oil imports, the increase in demand from India, the scarcity of supplies or the lack of supply, the high demand for electricity production in the world, and the decline in the strength of the dollar in half. The second of the year, and the absence of a negotiated solution to the Russian-Ukrainian crisis.
Mohamed Hefny (Cairo)