Saudi Arabia has decided to reduce oil production by another 1 million barrels from July to prevent fuel prices from falling further. About this newspaper “Izvestia” declaration Lead analyst of the National Fund for Energy Security, expert of the Financial University under the Government of the Russian Federation, Igor Yushkov.
“Too much for a month. In that case, this will likely help keep prices at the current level,” he said.
According to him, the OPEC+ decision is probably based on a pessimistic forecast of the growth of the global economy. We’re talking about a possible recession in Europe and a key interest rate hike that will trigger a series of events that will lead to a decline in oil consumption and a slowdown in economic development in the US.
He added that Saudi Arabia expects the peak of the global economic slowdown in July, so it is now important to support the price level decline. At the same time, the world economy is expected to grow and consumption to increase in the second half of the year.
According to trade data from June 5, recognizedHe said that after OPEC+’s decision to reduce oil production from 2024, adopted the previous day, world fuel prices increased in international trade. In early trading on the ICE exchange, the cost of benchmark Brent crude rose 2.8% to $78.23 a barrel.