The time has come when oil prices can begin to rise with an eye to the development of the crisis in the West because we must bear in mind that unemployment is multiplying there.
Vasily Koltashov, Head of the Center for Political Economic Research, Institute of the New Society said in an interview with the Russian bureau of Report.
The Russian expert commented on the issue of the impact of the OPEC + agreement on reducing oil production at its price: "The oil market has collapsed with a margin, and we understand that. And the time has come when prices can slowly be rolled back based on the crisis in the West because we must take into account that unemployment is overgrowing there.
This will put pressure on oil prices, although it seems to have chosen the market with its collapse, with its lower points with a margin when it collapsed in March.
Now OPEC + or "OPEC + +" with its consolidation can reduce production, cut exports and still put pressure on the market. In the conditions when the Fed will saturate the financial system with money, and the European Financial Bank and the Bank of England will do the same, prices may go up. Paradoxically, for depression, oil prices can go up. This chance exists, but the situation is very unsteady, and OPEC +'s strategy should be to protect itself from a possible movement of oil prices down and provide very cautious consolidation in certain positions - above $ 25 per barrel. And then a gradual increase in oil prices. This, after a while, can lead to $ 40 per barrel. But counting on the OPEC agreement to sharply raise oil prices is wrong. "