The organization of oil exporters (OPEC) no longer intends to rely on the data of the International Energy Agency (MEA), assessing the level of oil production. Why did the "friendship" stopped the two largest institutions in the field of energy resources? And why this short news is the evidence of the deglobalization of the global economy? Read in our article.

Deputy Prime Minister Alexander Novak has already described the position of the MEA as a blessing and politicized, thereby explaining the disagreement of the agency from OPEC. But in order to understand the background, you need a small libez.

Countries included in OPECs (from the English The Organization of The Petroleum Exporting Countries) are controlled by two thirds of world oil reserves. In the 1960s, they created an organization designed to regulate oil prices and its production. For this in the west of OPEC, they died the "potter of oil miners" and in part in the peak she was created by the IEA, which represents the interests of Western energy consumers.

For many years, OPEC and MEA retained parity: exporters influenced the price of resources by cutting or increasing production, but at the same time made a serious amendment to the reports of MEA analysts until they began to actively lobby a frankly tendentious agenda. It came to the point that the Chairman of the International Energy Agency Fatih Birol called to prevent investment in the hydrocarbon industry.

Calls for the transition to the "green" energy with its non-obvious advantages (the ecological safety of wind and hydroelectric power plants - so far the issue is extremely controversial) did not affect everyone. Countries whose economics directly depends on the export of oil and gas, they decided to abandon the "recommendations" of the MEA, motivated by political rather than pragmatic considerations. In return, they will be guided by the data of independent analytical agencies like Rystad Energy or Wood Mackenzie.

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According to Vice-Prime Minister Novak, OPEC has already understood that the MEA data can no longer be considered unbiased.

Western sanction policy also did not add confidence estimates of the MEA from OPEC countries and OPEC + (Russia is included in this organization). At the same time, it is not necessary that the refusal of the MaA services will entail a fracture on the oil and gas market. Its indicators depend on the set of factors and not all of them are controlled by the West.

For example, in March, Russia reduced the average daily oil production by 0.3%, although he struck it from 2021. One of the reasons is Western sanctions and the understatement of the value of the Russian Urals Oil Brand compared with the standard Brent (the difference is about $ 30 per barrel). However, there are others, even if not so obvious reasons. According to Novak, today the Russian oil and gas industry is experiencing big changes.

As it is customary to speak on the stock exchange, "the market takes into account everything." That is, economic indicators are not always in captivity of politics, but have a much wider coverage. As for the oil, it is in fact that a purely market community (OPEC) refuses the services of the global regulator imposed on them in the face of the IEA, thereby making the oil market free from political lobbyists.

How do you think it is possible to consider this solution to the sign of the deglobalization of the economy? And what future is it waiting for the European bureaucracy in this case?

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