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Global oil market can maintain balance — expert

Maria Belova recalled that the US President Donald Trump vowed to reduce prices, fill strategic reserves and export US oil and gas globally in his inauguration address

MOSCOW, January 21. /TASS/. The global oil market may keep the balance despite all the recent statements of US President Donald Trump, Research Director of Implementa Company Maria Belova told TASS.

Trump vowed to reduce prices, fill strategic reserves and export US oil and gas globally in his inauguration address and announced the energy emergency immediately after the inauguration and canceled drilling blocking measures introduced by the previous administration.

"All these measures are obviously aimed at increasing the US oil supply to the global market, which may result in surplus forming, considering its current condition, and require extra regulation measures from the OPEC+," the expert said.

Two factors are nevertheless in place that may prevent that, Belova continued. In particular, a potential ban on imports of Venezuelan oil by the US may entail the need to satisfy domestic demand on account of in-country production and a decline in oil production in Venezuela. "Therefore, the negative impact on the global market from the increase in oil production in the US will be lower. Secondly, US oil producers, despite calls to drill and issued permits, will be cautious in their action, taking their lead from oil prices and their costs. Thus the oil market has the chance to keep the balance," the expert added.