Russia Says OPEC Is Sacrificing Market Share for a Purpose

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Russia,Oil Production,Market Share

OPEC is strategically giving up some market share in the short term by limiting production in order to secure investments for long-term oil supply.

OPEC oil producers are ceding market share by tightening supply in order to secure investments ensuring long-term supply, Alexander Novak, Russia’s deputy prime minister and top OPEC official said. “Yes, we are probably deliberately moving, temporarily losing market share, but we are looking forward not to today, but to the future,” Novak told Al Arabiya in an interview.

” Speaking about the long-term outlook for oil and the goals of the supply control agreement, Novak said “It is important that, firstly, the energy sectors in exporting countries develop so that investments continue. This requires prices that would satisfy both exporters and importers, so as not to slow down the growth of demand, prices should not be high.

 

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