https://sputnikglobe.com/20230427/russia-sees-no-need-in-additional-opec-output-cuts-due-to-decreasing-prices-1109875149.html
Russia Sees No Need in Additional OPEC+ Output Cuts Due to Decreasing Prices
Russia Sees No Need in Additional OPEC+ Output Cuts Due to Decreasing Prices
Sputnik International
Russia sees no need to deepen OPEC+ production cuts due to slower-than-expected demand growth in China and lower oil prices, Russian Deputy Prime Minister Alexander Novak said on Thursday.
2023-04-27T07:10+0000
2023-04-27T07:10+0000
2023-04-27T07:10+0000
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"Of course, there is not [any need to cut oil production once again within OPEC+]. Because we only made a decision a month ago, and it will come into force from May for those countries that have joined. And this, I think, will be a good help if balance is not in favor of supply and demand, Novak told reporters.When asked how much the current recovery in oil demand in China is slower than OPEC + experts believed, the official said that the recovery is underway, noting that it may be going slower than expected by the group. The discount on Russian oil is now $26-$27 per barrel to the Brent benchmark, with the $34 bar prescribed by law, so the taxable base is higher, Alexander Novak said.Russia reached the declared volume of voluntary reduction in oil production in April, companies are fulfilling their obligations for its total reduction by 500,000 barrels per day, Russian Deputy Novak added.According to him, Russia will redirect to Asia 140 million tons of oil and oil products exports that previously accounted for Europe in 2023.On Wednesday, he said that Russia had redirected to Asian markets about 20% of oil and oil products earlier supplied to Europe.Last year, 40 million tons out of 220 million tons of oil and oil products envisaged for Europe were redirected to Asia.Oil market is now balanced, and its prices fluctuate around $80 per barrel, reacting to the dynamics of related markets and exchanges, Alexander Novak said."I think that the [oil] market is now balanced, taking into account earlier decisions, taking into account our [Russia's] production cuts, as well as cuts that we have seen in other countries. Plus, consumption will start to grow now, let's see how the situation develops," Novak told reporters.The official refused to comment on how sustainable the current price of the Brent oil could hold until the end of 2023.Alexander Novak said that Russia expects a decline in oil and condensate production in 2023 to 515 million tons from 535 million tons a year earlier. "The total [production], which we expect, is 515 million tons. Compared to last year, we had 535 million [tons], that is, minus 20 million tons," Novak told reporters.Thus, oil and condensate production in Russia this year may decrease by 3.7%.
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opec+ output cuts, russian deputy prime minister alexander novak
opec+ output cuts, russian deputy prime minister alexander novak
Russia Sees No Need in Additional OPEC+ Output Cuts Due to Decreasing Prices
MOSCOW (Sputnik) - Russia sees no need to deepen OPEC+ production cuts due to slower-than-expected demand growth in China and lower oil prices, Russian Deputy Prime Minister Alexander Novak said on Thursday.
"Of course, there is not [any need to cut oil production once again within OPEC+]. Because we only made a decision a month ago, and it will come into force from May for those countries that have joined. And this, I think, will be a good help if balance is not in favor of supply and demand, Novak told reporters.
When asked how much the
current recovery in oil demand in China is slower than OPEC + experts believed, the official said that the recovery is underway, noting that it may be going slower than expected by the group.
The discount on Russian oil is now $26-$27 per barrel to the Brent benchmark, with the $34 bar prescribed by law, so the taxable base is higher, Alexander Novak said.
"The discount is now actually lower than the minimum that is set in the law ... Now, the discount for North Sea [Brent[ Crude in the Baltic today is $26-27 per barrel, and in law, the discount is $34 per barrel in April ... that is, the taxable base is higher," Novak told reporters, commenting on the discount on Russian Urals oil and the possibility of its adjustment in the law.
Russia reached the declared volume of
voluntary reduction in oil production in April, companies are fulfilling their obligations for its total reduction by 500,000 barrels per day, Russian Deputy Novak added.
According to him, Russia will redirect to Asia 140 million tons of oil and oil products exports that previously accounted for Europe in 2023.
On Wednesday, he said that Russia had redirected to Asian markets about 20% of oil and oil products earlier supplied to Europe.
Last year, 40 million tons out of 220 million tons of oil and oil products envisaged for Europe were redirected to Asia.
Oil market is now balanced, and its prices fluctuate around $80 per barrel, reacting to the dynamics of related markets and exchanges, Alexander Novak said.
"I think that the [oil] market is now balanced, taking into account earlier decisions, taking into account our [Russia's] production cuts, as well as cuts that we have seen in other countries. Plus, consumption will start to grow now, let's see how the situation develops," Novak told reporters.
The official refused to comment on how sustainable the current price of the Brent oil could hold until the end of 2023.
"Well, it [oil price] fluctuates ... around $80 [per barrel] on some news, you know, on the common markets, where prices also react to the indices of other exchanges," he said.
Alexander Novak said that Russia expects a decline in oil and condensate production in 2023 to 515 million tons from 535 million tons a year earlier.
"The total [production], which we expect, is 515 million tons. Compared to last year, we had 535 million [tons], that is, minus 20 million tons," Novak told reporters.
Thus, oil and condensate production in Russia this year may decrease by 3.7%.
