For the present, the oil reserves are higher than demand in the world market. No serious hike is expected in oil price unless the reserves reduce to the level of current demand, Chief Economist of BP for Russia and the CIS Vladimir Drebentsov, who is on a visit to Azerbaijan, said.
According to him, a tendency of decline in oil reserves has been observed since July 2016: “The decline was caused by OPEC and non-OPEC countries’ agreement. The oil reserves are still higher than demand. Even so, the balance in the market is improving. The price tendency in 2014-2017 resembles the price changes recorded in 1985-1990”.
Drebentsov noted that the demand for oil is expected increase in the two years coming.
The Chief Economist thinks that OPEC+ countries will probably extend the agreement.