Drop in oil supply could balance the market in a year

US, WASHINGTON (ORDO NEWS) — A drop in the supply of raw materials can balance the oil market in a year, but it is necessary to monitor the demand for which the coronavirus negatively impacted, said Deputy Energy Minister Pavel Sorokin at a meeting of the Valdai Oil Club.

Earlier in an interview, Reuters Sorokin said that he expected a decrease in activity on projects with high production costs in 4-6 months. According to Sorokin, oil prices will return to the level of $ 40-45 per barrel in the second half of this year.

The OPEC + global deal, which implied a reduction in oil production, collapsed in March after the parties failed to agree on joint actions to contain falling prices in a coronavirus epidemic. As a result, the oil price collapsed by about half, dragging stock markets along with it.

Online:

Our Standards, Terms of Use: Standard Terms And Conditions.

Contact us: contact@ordonews.com

The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.