The price of oil without OPEC+ deals could fall to $ 25 per barrel. This was announced by the Minister of Energy of the Russian Federation Alexander Novak during the Russian Investment Forum in Sochi.
“Overproduction would be large enough (without an OPEC+ transaction - ed.), the reserves would grow significantly and exceed the average five-year values. The pressure would be very strong on prices. We already had an example in 2016, when prices at the beginning of the year reached the level of $ 25, and I do not rule out that such indicators would be achieved again”, Novak informs RIA Novosti.
OPEC and a number of non-member countries (OPEC+) at the end of 2018 decided to modernize the terms of the agreement on reducing oil production, which has been in force since the beginning of 2017. The countries agreed to reduce their production by a total of 1.2 million barrels per day from the level of October 2018, of which 228 thousand are in Russia. The new agreement is designed for the first half of 2019.