Oil prices to rise in case of new Middle East conflict - US expert
Baku, Azerbaijan, Feb. 23
By Anakhanum Khidayatova - Trend:
The agreement among Russia and a number of OPEC countries concerning the oil production freeze will not result in a sharp rise in prices, Alexander Murinson, a senior fellow at the Begin-Sadat Center for Strategic Studies and Bar Ilan University, told Trend Feb. 23.
Murinson said that with the Iranian oil coming online, he does not believe the oil prices will bounce back.
Iran, meanwhile, plans to increase its current oil production by 500,000 barrels after most of international sanctions against the country were lifted Jan. 16.
Iran increased production up to 3.37 mbd in January (from 3.35 mbd in December 2015), according to the latest OPEC report.
Currently, OPEC countries and non-OPEC countries are discussing possible freezing of oil production to stabilize the market situation.
On February 16, Russia, Saudi Arabia, Qatar and Venezuela agreed to maintain oil production in 2016 on average at a January level, if other oil producers join this initiative. Later, the Venezuelan oil minister said that this offer was supported by Ecuador, Algeria, Nigeria, Oman and Kuwait.
Murinson said that this situation can change, if a major conflict erupts in the Middle East involving Russia, Turkey, Kingdom of Saudi Arabia and the Gulf States.