According to Amos Hochstein, senior US State Department adviser for energy security, OPEC+ will have to revise its previous commitments to the level of oil production. The department staff members are sure that the current volume of oil production will be four times less than the declared one.
The US State Department energy security adviser believes that OPEC’s plan to cut oil production will be actually reduced four times. He notes that the world’s oil cartel and the oil-producing countries have made this decision due to political reasons.
The official said OPEC+ would unlikely reduce oil output to 2 million barrels per day. Moreover, Hochstein doubts the possibility of cutting oil production to 900,000 barrels per day. He thinks the figure of 500,000 bpd is more realistic. "They say, ‘Well, we’re not really going to cut two million. We're going to cut only 900,000. And then you look a little deeper. And it’s only about 500,000. Therefore, the consequences for the market will not be so significant. It was more of a loud political statement on the part of OPEC," Hochstein added.
Earlier, the International Monetary Fund (IMF) published a report on the economic situation in the EU. The report stressed the problems related to the implementation of a price cap on Russian oil. Currently, it is not clear which states will adhere to these regulations, the fund representatives noted.
