Kazakh Energy to attend next meeting of OPEC+ panel

Kazakh Minister of Energy Nurlan Nogayev will take part in the next meeting of the Joint Ministerial Monitoring Committee (JMMC) via videoconference on August 19, Report says, citing Kazakh press. 

The meeting will discuss the situation in the oil market.

This month the Organization of petroleum exporting countries, where Saudi Arabia has the highest weight, lowered its forecast for a decrease in global oil demand. Thus, transport links after the peak of the pandemic, or the first wave, do not recover as quickly as assumed. In the spring, following the sharp reduction in oil prices, OPEC countries, including Russia, Azerbaijan, Kazakhstan, Mexico, and Malaysia, agreed to reduce the production of raw materials, after which oil quotes rose. Higher prices mean more revenue to oil-producing countries’ budgets, but there is a nuance, as experts say.

As Deutsche Welle notes, 40 us dollars per barrel is about the cost of American shale oil, which producers Russia and Saudi Arabia, tried to destroy in the spring, but failed. As soon as the price rises above the $ 40 mark, production will increase in the States, and the OPEC agreement will have less impact on the market.