Russian Deputy Prime Minister Alexander Novak. File | Photo credit: Reuters
Russian Deputy Prime Minister Alexander Novak said on Monday that the global oil market will be in balance in the second half of the year and beyond, thanks to the OPEC+ agreement on production supply.
OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has implemented a series of production cuts since late 2022 to support the market. The group agreed on June 2 to extend the latest cut of 2.2 million barrels per day until the end of September and gradually phase it out from October.
The U.S. Energy Information Administration said last week that global oil demand will exceed production by about 750,000 barrels per day in the second half of 2024 due to lower OPEC+ production.
Last week’s OPEC report also pointed to an oil shortage in the coming months and into 2025.
Responding to a question about oil market conditions in the second half of the year from autumn, when OPEC+ will begin to unravel some of its production cuts, Mr Novak said: “Thanks to our actions, the market will always be in balance are.”
