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Vugar Bayramov: Amid falling demand for oil, supply for it exceeds demand by 10 million barrels

20.04.2020,16:23


April 20, Fineko/abc.az. As it was forecasted previously, there will be no increase in oil prices on the world market.

ABC.AZ was made such a statement by MP Vugar Bayramov, when answering a question about the fact that after the decline in oil production, the OPEC+ countries did not raise prices.

Bayramov noted that the goal is not to achieve price growth in the world market, as OPEC+ also recognizes that the daily cuts of production by 9.7 million barrels does not solve the problem of oil abundance in the oil market: "As, according to preliminary estimates, amid the declining demand for oil in the oil market, the supply still exceeds the demand for an additional 10 million barrels. In practice, coronavirus created a gap of 20 million barrels in the market, which led to a decrease in demand. As a result, despite the largest decline in production in the history of the OPEC+ format, oil could not be saved, as the pandemic causes a decrease in demand for oil."

By Elmir Murad