The price of oil faces a perfect storm and an unexpected country has been placed in the center: Kazakhstan
The oil market is experiencing one of Your most unstable stagesfrom internal disputes within the OPEC+ to the production policies of great powers outside the organization. In this scenario, the role of Kazakhstan has gained great relevance, but the real danger can be what is to come if it is combined with the focus of other international actors, such as the United States. Overproduction. A month ago, Kazakhstan was news because had to accelerate its nuclear development to address your growing shortage of energy., Approveing your first nuclear power plant. Now, this country that had always maintained a low profile in oil matters It has been increasing Production in recent weeks, overcoming what is estimated by OPEC+. According to A recent reportKazakhstan produced 1,767 million barrels per day (BPD) in February, a notable increase compared to 1,570 million BPD in January, and well above its quota in the organization, which It is set at 1,468 million BPD. The problems multiply. In the Tengiz deposit, operated in collaboration with Chevron, it has exceeded expectations being the largest within the OPEC+. This situation has caused a challenge in the goals of the oil organization to maintain a balance in production. In an attempt to stabilize prices, the oil organization had decided to increase gradually production after years of cuts to boost crude oil prices. However, with the price of oil collapsing, it is in need of reviewing its strategy. Russia’s threat to reverse the decision to increase production and internal disagreements about production quotas are complicating the situation even more. The imminent crisis. The price of crude has suffered a strong collapse in recent weeks, with a fall of more than 13% from the peaks reached in January. While this decrease It can be attributed to factors As the excess supply in America and a weaker demand, the Kazakhstan factor is acting as a catalyst that could deepen the crisis. Its excessive production could be an important factor for OPEC+ to not sustain its agreements and face a review of its strategy. Without significant correction, the market could face an even deeper price crisis. United States following closely. With Trump’s arrival, oil has resurfaced again in the United States. The current president has promoted a large -scale oil production policy, his famous: “Drill, Baby, Drill”. In this operation to continue producing to keep prices below $ 60 a barrel, experts They have pointed out That Trump has intensifying competition in a saturated market, affecting all crude -dependent economies. The worst is yet to come. The growing production of Kazakhstan and the United States is creating An uncertain panorama For the oil market. If the supply continues as the demand does not grow to the expected rhythm, the crude oil prices They could collapse even more, affecting both producers and oil -dependent economies. The point will be if the OPEC+ can balance these external pressures or if the market will be dragged into a price crisis. Image | Flickr Xataka | The era of the “renewable transition” has died as soon as it starts: BP leads the replication of the great oil companies
