“Now the main task of the parties to the agreement is to prevent the worst case scenario. The worst case scenario is an overflow of oil storage facilities around the world, ”Yushkov explained.
According to him, the logic of the current quotas is to reduce production and thereby delay the overflow of storage facilities.
“And to expect that, while they will gradually be filled with excess oil, demand will recover, primarily in China, because they were the first to defeat the coronavirus, abolish quarantine, that is, they get out of the restrictions on fuel consumption. There Europe must overcome this crisis, also remove quarantine measures and actually restore the demand for oil products, ”the analyst added.
The expert noted that everything happens due to the fact that the world "has greatly reduced the volume of oil consumption." According to Yushkov, this can be called a unique case.
Previously, OPEC + agreed on a deal to reduce oil production, it will last until May 1, 2022.