Oct 14, 2020
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Novak hopes OPEC + countries will be able to increase production as part of the deal

The organization of the oil exporting countries OPEC + looks at the situation in the oil market with optimism and hopes that they will be able to gradually increase production as part of the deal without harming the market. This was announced by the Minister of Energy of the Russian Federation Alexander Novak.

Despite the beginning of the second wave of the epidemic in a number of countries, my colleagues and I continue to look at the situation with optimism and expect that we will be able to gradually increase production, according to the terms of the deal, without harming the market., - wrote Novak in an article for the Energy Policy magazine.

According to the minister, oil will remain the leading source of energy for more than a decade. Novak expressed confidence that the Charter for Cooperation between Oil Producers is aimed at developing dialogue, technological cooperation and mutual support.

As wrote, Russian President Vladimir Putin received a call from the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud. The parties expressed solidarity on the issue of continuing joint work in the energy markets, including in the OPEC + format.

In May, OPEC + cut oil production by 9.7 million barrels per day. Since August, this quota has been reduced to 7.7 million and, according to a further plan, from January 1, 2021, it should decrease to 5.8 million. In other words, oil production should increase by almost another 2 million barrels per day.

The original plan assumed that the parameters of the deal could be revised in December 2021. However, a small exception was already made last summer - the OPEC + countries extended the maximum production cut of 9.7 million barrels per day for a month.

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