Russia (bbabo.net), - The participants in the OPEC+ deal have agreed to a joint increase in oil production in March 2022 by 400,000 barrels per day. It is reported by TASS.

The ministerial meeting of the alliance on February 2 was a record short one. The decision - not to change the previously agreed terms of the deal - was made in half an hour. Russia's quota in the March increase remains the same - 109 thousand barrels per day.

Oil prices are at their highest since 2014. Brent is trading above $90/bbl, while WTI is trading at $89.5/bbl. Since the beginning of the year, oil prices have grown by more than 17%. The decision of OPEC+ not to increase above the planned rate of recovery of production may contribute to a further rise in the price of a barrel.

This is facilitated by the decline in world oil reserves in storage, which are already close to multi-year lows. Experts also note that the lack of investment in new oil production projects may affect the pace of production recovery. Ole Hansen, head of commodity strategy at Saxo Bank, believes that by the second half of 2022 oil prices may exceed $100 per barrel.

For Russia, this scenario has twofold consequences. On the one hand, the National Wealth Fund (NWF) will receive additional revenues from oil exports, and the budget - from the taxes of oil companies. On the other hand, pressure from below on prices for gasoline and diesel fuel in Russia will increase, which will provoke their growth first in wholesale and then in retail. Aviation kerosene will also rise in price, which may lead to an increase in airfare. A particularly critical increase in prices on the domestic fuel market may occur if oil prices exceed $100 per barrel.

The next meeting of OPEC +, where the alliance's policy for April will be discussed, will be held on March 2.

bbabo.Net