Kazakhstan's exit from deal with OPEC not to influence global oil prices - expert

ALMATY. KAZINFORM - Financial analyst Rassul Rysmambetov shared his thoughts with Kazinform reporter about whether the exit from the oil output cut deal with OPEC will be profitable for Kazakhstan and whether it will influence global oil prices.

Rysmambetov believes that Kazakhstan's exit from the OPEC-led deal won't affect global oil prices. However, it may serve as an example for other countries that staying committed to the deal is unnecessary. In that case, it will have a minor effect.

According to him, if Kazakhstan exits the deal, hopefully it will get more funds into its budget. That said, Kazakhstan has problems with ineffective use of revenues. Plus, it struggles technically due to oil output cut.

As a reminder, some mass media reported earlier that Kazakhstan wants gradual exit from the OPEC deal followed by a smooth production increase within a month or two.

In late 2016, OPEC and 11 independent petroleum exporting countries agreed to reduce oil production. As per the agreement, its participants should reduce oil production by 1.8 million barrels a day in the first half of 2017. At the meeting in Vienna in May 2017, the agreement was extended until April 2018 with quotas for all participants.