OPEC+ countries in February 2021 reached the highest level of compliance with the agreement, fulfilling the deal to reduce oil production by 113%. This was stated by Russian Deputy Prime Minister Alexander Novak in an interview with the TV channel "Russia-24".
"For the first time we have the highest level in the entire time of the agreement in terms of execution - 113% in February was the execution of the agreement. This indicates a high level of fulfillment by all countries of their obligations," he said.
Novak also added that the OPEC+ countries have agreed to start restoring oil production within three months, starting in May. "Thus, we will reach the parameters that were set by the agreement," he stressed. - "The OPEC+ countries will be part of the overall schedule that was provided by the agreement signed in April 2020."
Possible increase in fuel consumption
Novak said the vaccination of the population could contribute to a recovery in automobile and air traffic during the summer months, leading to an increase in fuel consumption and stabilization in the global oil market.
"We are optimistic about the future, still hoping for the summer season. There should be increased mobility, including in road transport and air transport, so there was a more optimistic mood at the (OPEC+) meeting than at the beginning of the year. Therefore, we think that the situation in the market will normalize and we will see positive indicators for the market during the year," he explained.
Novak believes that Russia will evenly increase oil production in May - July 2021 by a total of 114 thousand barrels per day under the OPEC+ deal.
"As far as Russia is concerned, there were some decisions made in the previous months that allowed us from our quota to already partially restore production. We have a balance of 114 thousand barrels per day, and we just as evenly together with all countries use the restoration of this production within three months," explained the Deputy Prime Minister.
Novak stressed that the production growth will take place evenly during each month. TASS source in the industry noted that the increase in production in May could be about 38 thousand barrels per day, the same amount will increase in June and July. However, the Saudi Arabian Energy Minister, Prince Abdulaziz bin Salman, said at a press conference that Russia would be able to increase production by about 39.6 thousand bpd.
Monthly meetings
Novak said OPEC+ will continue the practice of monthly meetings to monitor the situation in the oil market, if necessary, may adjust the decision to increase production in the coming months.
"We have agreed that we will continue monthly meetings. The next meeting will be at the end of April. If necessary, after monitoring the situation, we will make a decision: either the ones we discussed today for the month of June, or the decisions that will be required based on the current situation," he said.
Under the new agreements, OPEC+ countries will increase oil production by 350,000 bpd in May and June 2021, and by 450,000 bpd in July.
In March, at the ministerial meeting of the OPEC+ agreement member countries, it was decided to extend the current level of oil production cuts until April 2021. At the same time, separate conditions were agreed for Kazakhstan and Russia, providing for a further increase in production during this period by 20 thousand and 130 thousand bpd, respectively.
GSV "Russia - Islamic World"
Photo: official website of the President of the Russian Federation
Based on materials from TASS