Deputy Prime Minister and Minister of Energy of Russia Alexander Novak called the expected oil prices until the end of 2021. He told about it in an interview with TV channel “Russia-24”.
“The prices of the market today are more or less stable – they range in the area of 62-66 dollars per barrel. We hope that such a stable situation will be by the end of the year,” said the minister. Novak added that Russia will continue to closely monitor the situation in the global oil market to ensure the balance of demand and suggestions.
Previously, OPEC + countries have agreed on the terms of increasing oil production at the meeting of the Ministerial Monitoring Committee of the Alliance. A month ago, the terms of the agreement decided not to change until the end of September 2021. According to them, in May OPEC + will increase production for 350 thousand barrels per day, in June – on the same figure and in July – by 440 thousand barrels per day. According to Novak, the decision not to change the previously planned numbers on oil production was taken due to the concerns on the market regarding the further growth of demand against the background of the growth of the number of infections of coronavirus in a number of countries.
For the first time, the OPEC + transaction, in which members of OPEC participate, as well as third-party partners, including Russia, was concluded at the end of 2017. In the future, it was repeatedly extended, and the conditions and volumes of reduction of production were revised. Last year, the main participants could not agree on the next extension, as a result of which the agreement broke out, and the world oil prices had sharply decreased. After a month later, the parties were able to come to new agreements.