The UAE global economist and regional development director of international bank LanceBank Nail al-Jawabara predicted a significant rise in oil prices in the coming days, driven by Russia’s decision to cut production. It has been reported DEA News.
According to the expert, any change in the production volumes of the main oil producers will affect prices and the market.
“We’ve seen a sharp increase in oil prices, up to $85 a barrel, despite falling two days earlier,” he said.
Al-Jawabara noted that since November 2022, oil production has dropped by 2 million barrels.
Any decrease in production will affect prices, especially Russia’s decision will cause oil prices to rise sharply in the coming days.
The expert added that the world is already experiencing an increased energy demand and this will only increase given the increase in demand from China, which has lifted the restrictive measures related to the coronavirus infection.
February 10, Deputy Prime Minister of the Russian Federation Alexander Novak declarationHe said Russia would voluntarily reduce oil production by 500,000 barrels a day in March. He pointed out that Moscow will not sell raw materials to countries that support the ceiling price.
How reported Reuters, referring to a report by the organization’s two delegates, stated that OPEC+ member countries do not plan to reduce or increase oil production due to the Russian Federation’s cut in raw material production.
OPEC+ includes Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Sudan, South Sudan and Russia.
On December 5, an agreement between the European Union, the G7 countries (England, Germany, Italy, Canada, France, Japan and the USA) and Australia to raise Russian oil at $60 per barrel entered into force. Since February 5, the price limit of $100 per barrel for Russian petroleum products sold at a higher price than crude oil (eg diesel and kerosene) has been granted to discount traders (for example, the ceiling was $45 for naphtha and fuel oil).