Multinational insurance firm Coface published its predictions for Morocco, expecting the price of oil to increase to $90 per barrel this year from its present cost of $80.
The average price of a barrel of oil dropped to $75 during the second half of March, although forecasts point to an increase due to the decision of the major oil-producing nations in the “OPEC +” alliance to reduce production.
The oil price increase will affect the pricing of petroleum products, particularly gas, and cause Morocco’s energy bill to increase once more after reaching an unprecedented level of about 153 billion dirhams last year.
Saudi Arabia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman’s decision to restrict oil output by more than 1.1 million barrels per day was a surprise to the oil market.
The decision to limit production by around 500,000 barrels per day in response to European Union penalties follows an initial cut made in October, according to the report.
The International Insurance Agency emphasized that the total production cuts account for 3.7% of the world’s demand ,consequently, it is anticipated that the average price of a barrel of oil will stabilize at $90 per barrel.
Within the same report, Coface specialists noted that oil prices had a considerable decline after peaking at $139 during the Russian invasion of Ukraine. For oil producers to feel secure, the measure therefore tries to raise prices so that they do not drop below $80.
Washington turned to using the strategic stockpile to slow the rise in costs at the start of the Ukraine War, and it has hinted that it will take several years to restore this stockpile.
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