MOSCOW - The Organization of the Petroleum Exporting Counters and its allies, known as OPEC+, may consider wrapping up their oil output reduction in 2020, Russian Energy Minister Alexander Novak said on Friday.
“As far as the production cuts are concerned, I repeat once again, this is not an indefinite process. A decision on the exit should be gradually taken in order to keep up market share and so that our companies would be able to provide and implement their future projects,” Novak told Rossiya 24 TV. “I think that we will consider that this year.” Russia’s energy ministry said that Novak was referring to 2020 when talking about a possible decision to wrap up production curbs “this year”. OPEC+ has been capping its output since 2017 in order to balance out the supply and demand on the global oil market as well as prop up oil prices. Novak praised the cooperation between OPEC and non-OPEC producers, saying that global oil markets are currently more or less stable.
He said that the oil demand may rise in the summer when more fuel is required by motorists.
OPEC+ this month decided to prolong its oil output restriction deal until the end of March and to deepen the cuts in order to balance out the oil market.