The new abbreviations of OPEC+announced in early October increase risks to ensure the stability of energy safety in the world. This is stated in the monthly report of the International Energy Agency (IEA).
“The massive reduction in OPEC+ oil supplies increases the risks of energy security around the world. Even taking into account lower expectations of demand, this will sharply reduce the so necessary increase in oil reserves before the end of this year and in the first half of 2023,” the report said.
Last week, the states included in the OPEC+agreement decided to reduce oil production by 2 million barrels since November. The IEA assesses that the real reduction of OPEC+ will be about 1 million barrels per day, since many countries have already mined below target levels, not having the opportunity to increase production more. According to the agency, the main reduction will be in Saudi Arabia and the UAE. A further decline in oil production in Russia is also expected in connection with the beginning of the EU embargo in December