OPEC Warns About Market Volatility from Trump's Trade Policy

The Organization of Petroleum Producers and Exporters (OPEC) has warned that the US President's trade policy, particularly increased import duties on Chinese goods, risks triggering volatility in global markets, reports Orda.kz, citing Bloomberg.

OPEC stated that the new tariffs "increased uncertainty in markets, which could create supply and demand imbalances that do not reflect market fundamentals."

This market volatility poses risks for Kazakhstan's economy, which heavily relies on oil exports as an OPEC+ member.

Trump has previously urged OPEC to reduce oil prices.

Current world prices are around $76 per barrel, marking a 17% decrease from last year's peak.

After three postponements, OPEC faces a crucial decision on production caps in the coming weeks.

The decision is particularly significant for countries regularly exceeding oil quotas, including Kazakhstan.

As Bloomberg notes:

Neither Russia nor Iraq has made much progress in meeting the additional quotas promised to compensate for overproduction. Kazakhstan, another regular offender, continues to exceed production quotas.

While OPEC maintains unchanged forecasts for global oil market supply and demand, projecting consumption growth of 1.4 million barrels per day in 2025–2026, potential continued production restrictions could impact Kazakhstan's oil-dependent economy.

Kazakhstan's expanding production at Tengiz further complicates the situation, making quota compliance increasingly challenging.

Original Author: Nikita Drobny