Alexander Novak, the Russian Deputy Prime Minister, stated that global oil demand is projected to increase by 2.4 million barrels daily this year, which in his view, will keep the market well-balanced due to solid demand.
He confirmed that Russia’s oil output remains steady, producing approximately 9.5 million barrels per day, following a meeting of the joint monitoring committee comprising Opec and non-Opec producers.
In an interview with Russian state television, Novak stressed Russia’s full commitment to previously agreed-upon arrangements, stating that within the framework of Opec+, Russia fully adheres to its responsibilities.
Novak had previously announced, on the preceding Thursday, that Russia plans to reduce its oil exports by 300,000 barrels daily in September. This declaration came after a reduction of 500,000 barrels per day in August, a decrease roughly equivalent to 5% of Russia’s total oil production.
According to Goldman Sachs, this decrease in exports, particularly the substantial decline in seaborne crude exports to India, has resulted in Russia’s total oil production dropping to 10.7 million barrels daily.
In Novak’s assessment, the market is currently stable with prices at an acceptable level. He credited this stability to measures implemented by Opec+, including Russia, which have helped maintain the balance of supply and demand.
Oil prices are trending towards a sixth consecutive week of gains, having increased approximately 18% during this period.
