March 20, 2023

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OPEC + did not heed Washington's calls to increase oil production

OPEC + did not heed Washington’s calls to increase oil production

Russian Deputy Prime Minister Alexander Novak today called on the OPEC + Large Manufacturers Group … Oil It opposes Washington’s calls to increase production because it does not want to deviate from its policy.

He added that OPEC + had not heeded Washington’s calls to increase oil production.

The United States has repeatedly pressured OPEC + to speed up production as US petrol prices rise and President Joe Biden’s popularity declines.

Faced with the rejection of OPEC +, Washington said in November that it and other consumers would withdraw from their strategic crude reserves.

When asked why OPEC + rejected US calls, Novak said the group had a long-term vision.

“We believe it is appropriate for the market in the medium term to show how we can increase production when demand increases,” he told RBC.

“Manufacturing companies need to be aware in advance of any investments they need to make to ensure that production increases,” he added.

OPEC and its allies agreed this month to stick to the current policy of a monthly increase in oil production, despite concerns that the US withdrawal of crude reserves and the new modified strain of the corona virus, Omicron, could trigger a new fall in crude prices.

Novak also said that the US and other key consumer strategic cuts would have a limited short-term impact on the oil market.

After rising to five million barrels a day this year, he expects global demand for crude oil to rise to about 4 million barrels a day next year.

He said the price of a barrel of oil next year would be appropriate at $ 65 to $ 80. The price of oil is currently less than $ 80 a barrel.

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In 2016, ten countries joined OPEC to form the OPEC + Group.