Tue Oct 01 08:45:00 UTC 2024: ## OPEC+ Cede Market Share to Secure Long-Term Oil Investments
**Moscow, Russia** – Russia’s Deputy Prime Minister and top OPEC+ official Alexander Novak has revealed that OPEC+ members are intentionally ceding market share to secure long-term oil investments. This strategy, he says, is aimed at ensuring a stable supply of oil and maintaining a balance between the needs of exporters and importers.
“We are probably deliberately moving, temporarily losing market share, but we are looking forward not to today, but to the future,” Novak told Al Arabiya.
Novak also confirmed Russia’s commitment to the OPEC+ agreement beyond 2025, when the current output cuts are scheduled to be phased out. While acknowledging the influence of algorithmic trading on oil markets, Novak stated that OPEC+ will continue to monitor market conditions and adjust its production strategy accordingly.
The decision to temporarily reduce production comes at a time when oil markets are experiencing significant volatility and uncertainty. While some experts predict an upcoming “refining supercycle,” others believe the global energy transition is already impacting oil demand.
OPEC+, which accounts for nearly half of global oil production, has a significant impact on oil prices. However, Novak emphasizes the need for a “price that would satisfy both exporters and importers,” aiming to avoid slowing down demand growth.
This announcement comes as OPEC+ prepares to begin phasing out its output cuts in December, provided market conditions are favorable. The move is seen as a calculated risk by OPEC+ members, aiming to secure long-term investments and maintain a stable oil market.
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