Russia is ready to change OPEC+ production quotas if necessary
The OPEC+ group is still studying whether or not to increase oil production, but will act on supply if necessary, Russian Deputy Prime Minister Alexander Novak said on Tuesday .
The possibility of increasing supply is still under review, Russia's top oil official said, as reported by Russian news agency Interfax. “It always depends on the current situation, on the balance between supply and demand,” Novak said.
“Everything is analyzed. Right now, you don't need to predict anything, just see how the market feels,” he said.
Novak added that OPEC+ participants “are constantly monitoring the situation, and this is our plan for the second quarter, we have agreed with our colleagues that these voluntary cuts can be modified to increase supply if necessary.”
“This is a constant process,” Novak emphasized. Meanwhile, the price of WTI oil fell below $80 a barrel.
The OPEC+ group will meet on June 1 to decide how to proceed with current production cuts in the second half of the year. The current supply agreement, which takes about 2.2 million barrels per day (bpd) off the market, including Saudi Arabia's voluntary 1 million barrel cut, expires at the end of June.
As of late last week, OPEC+ had not yet started formal talks on the alliance's production policy, sources at producers who are part of the deal told Reuters .
If oil demand fails to accelerate, the group may maintain oil production cuts, the sources added.
“We think there is a good possibility that OPEC+ will extend beyond June – but we don't have a firm opinion yet because we don't think they have entered the real discussion and decision period,” Richard Bronze of the Energy Aspects consultancy.
A majority of analysts expect OPEC+ to extend the cut into the second half of 2024, according to a Bloomberg poll last week.
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The article Russia is ready to change OPEC+ production quotas if necessary comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-e-pronta-a-cambiare-le-quote-di-produzione-opec-se-necessario/ on Wed, 08 May 2024 07:00:33 +0000.