Russia's Novak does not expect new steps from OPEC+ meeting | Inquirer Business

Russia’s Novak does not expect new steps from OPEC+ meeting

/ 04:34 PM May 25, 2023

Russian Deputy Prime Minister Alexander Novak in Shanghai, China

FILE PHOTO: Russian Deputy Prime Minister Alexander Novak attends a session of the Russian-Chinese Business Forum in Shanghai, China, May 23, 2023. Sputnik/Dmitry Astakhov/Pool via REUTERS

Russian Deputy Prime Minister Alexander Novak said on Thursday he expected no new steps from the OPEC+ group of oil producers at its meeting in Vienna on June 4, Russian media reported, after the group announced a significant output cut earlier this year.

Saudi Arabia and other OPEC+ oil producers announced cuts of more than one million barrels per day in April after crude prices in March fell toward $70 a barrel, the lowest in 15 months.

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Novak said he expected Brent to be above $80 a barrel by the end of the year, the state-owned news agency RIA reported. He said current prices of $75-76 reflected the market’s assessment of the global macroeconomic situation.

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OPEC+ will hold an in-person meeting in Vienna this year.

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“This will be the first face-to-face meeting in six months, we are waiting, as usual, for an assessment of the situation in the market,” Novak was quoted as saying by Izvestia newspaper.

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“But I don’t think that there will be any new steps, because just a month ago certain decisions were made regarding the voluntary reduction of oil production by some countries due to the fact that we saw the slow pace of global economic recovery.”

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Sending another signal that no action might be required from OPEC+ at its next meeting, Russian President Vladimir Putin said on Wednesday that energy prices were approaching “economically justified” levels.

Putin said this month that production cuts implemented by OPEC+ were required to maintain a certain price level, contradicting assurances from other leaders of the group that it was not seeking to manage the market in that way.

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Oil prices were little changed on Thursday as uncertainty over whether the United States will avoid a debt default weighed against the prospect of further OPEC+ production cuts.

Prices were supported by tightening of U.S. crude and fuel supplies and by a warning from the Saudi energy minister to speculators which raised the prospect of further cuts by OPEC+.

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TAGS: Oil production, OPEC+ meeting, Russia

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