Japanese authorities: OPEC + decision to cut production could lead to higher prices

OPEC+'s decision to extend oil production cuts could lead to higher oil prices, Chief Cabinet Secretary of Japan Hirokazu Matsuno said, Report informs.

“We know that at the OPEC+ meeting, it was decided to extend the cut in oil production until the end of 2024. In early April, some countries had already announced production cuts. In addition, Saudi Arabia has now decided to cut oil production by 1 million in July. That is, there is a growing imbalance of supply and demand and opacity, which can lead to a stop in oil prices at a high level. The government is closely monitoring trends in the global energy market, as well as the impact on the Japanese economy, including rising prices,” Matsuno said.

As a result of the OPEC+ meeting held on Sunday, it was decided to reduce the overall target level of oil production by about 1.4 million barrels per day to 40.46 million barrels per day from 2024.