OPEC+ countries decided to cumulatively increase oil production in August by 648 thousand barrels per day, Russian Deputy Prime Minister Alexander Novak said in an interview with Russia-24 TV channel. Thus, OPEC+ did not change the parameters of the agreement approved last month for August.
"The decisions that were taken today are to increase production jointly by 24 countries by 648 thousand barrels per day in August," Novak said.
According to him, OPEC+ countries fulfilled the agreement by no more than 100%. The decision will make it possible to balance the oil market and provide consumers with products in full. The next OPEC+ meeting will be held in early August, Novak added.
Asian direction
Novak said Russia has already redirected a significant portion of its oil and oil products to markets in the Asia-Pacific region, and Asia is happy to buy them.
"Today, in the conditions that unfriendly countries both announce and practical actions are made to reduce the consumption of Russian oil and oil products, we already have a fairly large volume of oil, share of oil and oil products reoriented to the Asia-Pacific markets. Our oil and oil products are happily purchased. All in all we are satisfying the growing Asia-Pacific demand with our capabilities," he said.
Novak noted that the Asian direction has for many years been one of the key directions for supply of Russian energy resources due to the high growth of demand for both oil and gas and coal.
Oil production recovery
Russia in June almost restored the volume of oil production to the February indicators after its fall in March-April. Production now stands at about 9.9 million bpd, compared with 9 million bpd in March-April, Novak said.
"Our production recovered from the fall in March-April, and in June we almost reached the level of February. Then we were producing 10.2 million bpd, in March-April we reduced it [production] to about 9 million bpd. Now, in June, we have an average of 9.9 [million bpd]," Novak said.
According to him, Russia will be able to increase oil production this summer to the level of its quota under OPEC+. "I am confident that we will ensure the recovery and the quotas that have been given to Russia to ensure the balancing of supply and demand in the summer," Novak added.
The OPEC+ decision will balance the oil market, he said.
On the rise in oil prices
The creation of a so-called buyer's cartel to limit the prices of Russian oil will lead to an imbalance of the market and increase its cost, the deputy prime minister said.
"In my opinion, this is yet another attempt to interfere with market mechanisms, which can only lead to market imbalance, to market shortages and energy resources in the market, which, in turn, will lead to higher prices and, accordingly, to European consumers, primarily from the G7 countries, pay a more expensive price of energy on the world market. In my opinion, this is a measure directed against them, as it has happened more than once," he said.
According to Novak, decisions on the embargo on Russian coal have led to a shortage of coal and higher prices. "The work of coal plants is being restored, while at the same time there is a shortage of coal in Europe. Of course, these measures are not considered economically, unreasonable, and they, as I said earlier, will only lead to an increased burden on European consumers," said Deputy Prime Minister.
The G7 countries intend to try to limit prices of Russian oil and discuss such a possibility with other states, including consideration of the possibility of a ban on its supplies by sea if its price exceeds the ceiling "agreed by international partners.
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Photo: official website of the President of the Russian Federation
Based on materials from TASS