The Strategist

Japanese government: OPEC+ decisions to reduce production may lead to higher oil prices

06/05/2023 - 10:19

Oil prices may rise as a result of OPEC+'s decision to extend production cuts, according to Hirokazu Matsuno, Secretary General of the Japanese government.

"We are aware that OPEC+ opted to extend oil output curbs through the end of 2024. Several nations have already declared production cuts at the beginning of April. Saudi Arabia has also planned to reduce oil production by 1 million barrels in July."

"There is a rising supply-demand imbalance that might stop oil prices at high levels, as well as a lack of transparency." According to Matsuno, the government is closely observing changes in the world energy market as well as their effects on the Japanese economy, particularly price rises.

The alliance's official communiqué from the meeting on Sunday reads that OPEC+ will reduce its overall oil production target by roughly 1.4 million bpd to 40.46 million bpd starting in 2024.