Post: The preservation of high prices in the world oil market was discussed in Japan

Oil pumping chairs of the Tatneft company. archive photo

Japanese government: Risk of halting world oil prices at high

TOKYO, December 5 – RIA Novosti. Hirokazu Matsuno, secretary-general of the Japanese government, said at a press conference in Tokyo in connection with the decision to continue the OPEC + oil production cuts, that there is a risk of stalling prices in the global oil market at a high level.

“At yesterday’s meeting, OPEC + decided to maintain the level of reduction in oil production of 2 million barrels per day. As for the production of Russian oil, the mismatch (unpredictability) of supply and demand is increasing and prices are likely to fall. The government closely monitors movements in the international energy market and their effects on the Japanese economy. Producer and consumer countries such as Saudi Arabia and the United Arab Emirates are making efforts to stabilize the international crude oil market by increasing production and investing in production capacity. it does.”

The OPEC + alliance has agreed to maintain the current parameters of the agreement and continue to reduce oil production by 2 million barrels per day.

OPEC+ reduced oil production by 9.7 million barrels per day in May 2020 due to the drop in oil demand caused by the pandemic. Since August of this year, the alliance has entered the final phase of coming out of these cuts, but since November it has reduced production by 2 million barrels per day from the highest possible level for August.

The participants of the transaction explained their decisions with the uncertainty of the forecasts of the world economy and the corresponding decrease in oil demand. Therefore, at the end of October, OPEC Secretary General Haytham al-Gais said that OPEC+ overestimated the oil market in the fourth quarter of 2022 and early 2023 and therefore decided to cut production again.

Source: Ria

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