An executive at “Rosneft” said that global oil prices may rise to $ 120 in the middle of next year, given that the ability of “OPEC +” to meet demand is threatened by a lack of investment and sanctions.
At Tuesday’s conference, Otabek Karimov, vice president of trade and logistics at the Russian company, explained that “OPEC + countries cannot increase production to the extent necessary to meet demand… As a result, there is a serious shortage of energy resources in the entire world today, and it is normal for prices to be affected.” “.
The price of crude oil rose by nearly 60% to above $82 a barrel this year as a result of the strengthening of the recovery from the epidemic and the rise in demand, while the Organization of Petroleum Exporting Countries and its allies only gradually increased supply.
Russian President Vladimir Putin said last month that reaching $100 a barrel of oil was “extremely possible,” a view shared by Eni and Trafigura Group. Bank of America believes the price could climb to $120 by June.
Karimov’s comments come a day after senior officials from Russia, Saudi Arabia and the UAE – all members of “OPEC +” – said they expect the global market to become oversupplied soon, which could lower prices and justify the group’s cautious approach. The International Energy Agency also expects that the price rally is about to end.
While the “OPEC +” alliance refuses to change its current plan to raise production by 400,000 barrels per day, the real increases do not reach this number, as member countries such as Nigeria and Angola are suffering in raising supplies as a result of a lack of investment. Russia produced more than its quota last month, according to the International Energy Agency.
Rosneft, Russia’s largest oil producer, is bound by production restrictions under the agreement, but has historically opposed Russia’s participation in the OPEC+ agreement. The company said it plans to increase production quickly once the agreement expires in 2022, and aims to produce up to 30 million tons of oil, or about 600,000 barrels per day, from its future oil project, Vostok, in 2024.
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