MIL OSI Translation. Region: Russian Federation –
By June, OPEC and non-OPEC countries expect to reach the average five-year values for commodity stocks, this is one of the main goals of the agreement, the Deputy Prime Minister stressed.
According to Deputy Prime Minister Alexander Novak, following the consultations held in the videoconference mode, the countries participating in the agreement have retained the existing agreements on increasing oil production in July in order to maintain a balance of supply and demand.
“An agreement was reached that in July the parameters will be preserved. Thus, the growth of production by OPEC and non-OPEC countries will amount to 441 thousand barrels per day, in June it is 300 thousand barrels per day, in May – also 300 thousand barrels per day. Thus, by the end of June we are reaching the target level, which was indicated by the agreement of last year, ”said Alexander Novak.
According to the Deputy Prime Minister, the demand for energy resources in the world continues to grow amid progress in the fight against coronavirus infection. “We have been observing a balance of supply and demand on the market for several months now, primarily due to our agreement. It reduced the surplus of reserves from 260 million barrels to 34 million barrels on the market. We expect that in June the level of reserves will reach the average five-year level, this is actually our task, ”the Deputy Prime Minister said. OPEC + countries also continue to successfully fulfill their obligations, even overfulfilling the deal: in April, the fulfillment rate reached 113%.
“In April, the forecast for global GDP growth was revised upwards – up to 5.5%, and the forecast for the growth of oil demand in the world – now growth in 2021 is expected to reach 6 million barrels, which is 5.5% higher than the initial level. million barrels. The growth in demand is also reflected in the increase in air traffic, they reached 65-70% of the pre-crisis level, while road traffic also generally recovered, and in Russia it even exceeded the pre-pandemic level and reached 105%, ”said Alexander Novak.
At the same time, the development of cooperation between countries in the oil market not only contributes to the development of cooperation and stabilization of the oil market, but also gives prospects for expanding bilateral cooperation between countries, the Vice Prime Minister emphasized. “We can be sure that our cooperation has a beneficial effect on the market, and this concerns not only ensuring market stability, but also new doors are opening for bilateral cooperation, technological interaction, the implementation of new projects on the territory of participating states, third countries,” he added …
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.