Russia may continue the recovery of oil production in July and increase it compared to June. Oil exports will also increase this month, Russian Deputy Prime Minister Alexander Novak told reporters on the sidelines of the St. Petersburg International Economic Forum.
"I thought there were preconditions that we would continue to increase production in July. We see that we have quite a significant increase in June compared to May - it is plus 600 thousand barrels (per day). Actually, we are close to regain February levels," he said.
Russia may increase oil production in July by June
Russia plans to increase oil refining in June, slightly reducing exports, the deputy prime minister said.
"Exports (in June will be) lower because they increased significantly when there was a reduction in oil refining, so the freed up volumes (in April-May) were directed to exports. In June, exports will be slightly lower because the refineries will be busier," he said.
Oil price
Russia admits that the price of oil may rise even higher before the end of the year, but everything will depend on the balance of supply and demand. Russia, meanwhile, hopes for an increase in global demand, although uncertainty remains due to the possibility of a lockdown in China due to Covid-19, the deputy prime minister said.
"There are different forecasts, including that oil [price] will continue to rise. It all depends on the balance of supply and demand," he said.
"I hope demand will continue to recover during the year as planned, but there are some risks associated with lockdowns in the People's Republic of China. So we'll see how the global economy and consumption develops," he added.
Well mothballing
Russian oil companies have not mothballed wells, so the country has the technical ability to ramp up production to pre-crisis levels, Novak said.
"I don't think we had any well mothballing, the process is technological, it can be adjusted," he said.
Novak added that companies are now redirecting export flows and establishing new links, production chains.
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Photo: official website of the President of the Russian Federation
Based on materials from TASS