Russian Analysts Told How the OPEC + Decision Will Affect the Oil Market
OREANDA-NEWS. Dmitry Marinchenko, director of the group for natural resources and commodities at Fitch, told RIA Novosti that OPEC + 's decision on the parameters of the deal for February and March will have a positive effect on the oil market, as it reduces the likelihood of its return to oversupply and should support oil prices.
This refers to the decision that OPEC + made following the meeting on December 5, when it determined the parameters of its deal two months in advance: the current terms of the agreement were extended for almost all countries, but Russia and Kazakhstan got the opportunity to increase production in February and March, and Saudi By contrast, Arabia and a number of other participants decided to further reduce it.
According to the analyst, this news is positive for the market: OPEC + as a whole will not increase production yet, this reduces the likelihood that the market will go into a surplus and should support oil prices.
He noted that the conditions for Russia and Kazakhstan put these countries in the most advantageous position in comparison with all participants in the transaction. Dmitry Marinchenko said that "it is good that the OPEC + countries were able to reach a consensus, but this decision suggests that the negotiations were clearly not easy and the participating countries had different views on how to act in the current conditions."
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