OPEC+ Strategic Oil Moves: Balancing Prices and Investments

OPEC+ is strategically reducing oil supply to balance long-term market stability and secure enough investments. Russian Deputy Prime Minister Alexander Novak highlighted the importance of satisfying both producers and consumers. Despite reduced market share, OPEC+ aims for sustainable growth and price stability amid global political tensions and fluctuations.

OPEC+ is strategically reducing oil supply to ensure long-term market stability and attract investments. According to Russian Deputy Prime Minister Alexander Novak, this approach aims to synchronize oil prices to satisfy both producers and consumers.

Addressing Al Arabiya News, Novak emphasized the importance of thinking long-term rather than focusing solely on immediate market share. 'Yes, we may temporarily lose market share, but our focus is on future sustainability,' Novak stated, highlighting the need for pricing that encourages investments while balancing market demand.

Since the output cuts initiated in 2022, OPEC+ has experienced a decline in market share. As a response to the dropping oil prices, OPEC+ decided to delay a planned increase in oil output to December, and further policy will be reviewed in the upcoming meetings.

Current oil prices, averaging around $80 per barrel, are seen as balanced, despite recent fluctuations. These prices are considered stable enough to meet the needs of both producers and consumers, even amidst geopolitical tensions in the Middle East.

(With inputs from agencies.)