Named the only source of indignation left in the oil market

MOSCOW, 8 Sep — PRIME. The absence of a surplus in the oil market will allow Russia to sell fuel at “normal” prices, and the only “source of indignation” will remain the US strategic reserve, independent analyst Dmitry Adamidov explained on Sputnik radio.

Earlier, OPEC+ countries decided to cut oil production by 100,000 barrels per day in October. According to the expert, this will prevent a surplus of fuel on the world market against the backdrop of attempts by the West to set marginal prices for Russian energy resources. In 2015-2017, a sharp decline in the cost of oil was due to the lack of consensus between the countries exporting this type of fuel, he believes. Meanwhile, now, according to Adamidov, the OPEC + countries have reached an agreement.

“If we delve into history, the crisis in the oil market of 2015-2017, when oil was very low, was due to the fact that Saudi Arabia tried to play an independent role and slightly miscalculated its strength. Accordingly, the fact that OPEC still reduces production, but does not increase it, and at the same time very carefully, trying not to blow off an extra speck of dust, makes some statements about the future development of the oil market, says that there is understanding, there is consensus, and most importantly, that there is peace within OPEC” – said Adamidov.

The only “source of indignation” in the oil market under such conditions remains the US strategic reserve, he said.

Under these conditions, the expert noted, the OPEC+ countries managed to avoid extremes and develop “a certain sound line that allows not only keeping prices at a high level, but not allowing a physical surplus in the market.” This is because it is the surplus that provokes sharp price fluctuations, he explained.

“Now there is only one source of indignation left – the US strategic reserve, which they will safely dissolve by November. And then we will have a chance to enter a more or less balanced market and look for normal prices. Most likely, these will be different prices for the BRICS countries and for everyone else,” Adamidov predicts.