Expert: OPEC decision to stabilize oil market

Baku. 8 December. REPORT.AZ/ OPEC decision to cut output will have certain impact on stabilization of oil price, at least, it will prevent fall in price, Gleb Gorodyankin, Editor in Chief on oil markets at Thomson Reuters told Report.

However, he said, contradictions between OPEC and US still remain: ‘US will keep increasing production. That’s barrels withdrawn from markets by OPEC will be replaced by US schist oil’.

At the 5th meeting on Friday in Vienna, OPEC and non-OPEC countries reached a deal to take 1.2 million barrels per day off the market from January 2019. The OPEC members has agreed to reduce its output by 800,000 bpd, while non-OPEC countries will contribute a 400,000 bpd reduction.