Kazakhstan is interested in rising oil prices more than increasing oil production, says expert
Kazakhstan is more interested in rising oil prices than in increasing its production, economist Saparbai Zhobayev believes. He said that restrictions in oil production will not have a significant impact on the economy. The problem lies in low oil prices. Zhobayev explained that currently the oil and gas sector accounts for nearly 15 percent of the country’s GDP. Most of the budget revenues come from oil exports.
“I believe that the oil price will rise to US$45 or 50 (19,935 to 21,550 tenge) per barrel in the near future, because the global pandemic will end next year and the global economy will begin recovering, flights will become regular. That’s when the demand for gasoline would increase,” said Saparbai Zhobayev, PhD in Economics
World oil prices are fluctuating. Recently, oil prices fell by just over four percent. Brent crude futures dropped below US$39 (16,809 tenge) per barrel. Increase in oil supplies from the OPEC countries is one of the reasons for that. Kazakhstan fully fulfilled its obligations under the agreement in September. According to Kazakh Energy Ministry, the average daily oil production amounted to 1.3 million barrels.