MIL OSI Translation. Region: Russian Federation –
Thanks to the restoration of global business activity and demand for oil, the OPEC + countries and Russia will increase the production of raw materials, while Russia will receive more than 400 billion rubles of additional budgetary revenues from the increase in oil production, the Deputy Prime Minister said.
After lengthy consultations, the OPEC + countries agreed to extend the OPEC + Cooperation Agreement until the end of 2022, while starting from August this year, all countries of the agreement will increase oil production by 400 thousand barrels per day every month. This was announced by Deputy Prime Minister Alexander Novak following the results of the 19th ministerial meeting of the OPEC and non-OPEC countries, which took place via videoconference.
The decisions made by OPEC + will allow Russia to significantly increase both the extraction of raw materials and revenues to the country’s budget, noted Alexander Novak.
“It was decided to restore production to the pre-crisis level. For Russia, for example, we will reach the pre-crisis level by May next year, this will allow us to increase production by 100 thousand barrels per day from August, to provide an additional production volume in this and next years of about 21 million tons. At an average price of 60 US dollars per barrel, additional budget revenues will amount to more than 400 billion rubles. This is a positive moment, because this is the restoration of investment activity for the oil industry, therefore, additional orders for the industry, additional revenues to the budgets of the constituent entities of the Russian Federation, ”said the Deputy Prime Minister.
In addition, by the consolidated decision of the OPEC + countries, the basic parameters of the level of oil production, from which quotas for the parties to the agreement are calculated, will be adjusted. As Alexander Novak noted, this decision will affect five countries – Russia, Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. “For Russia – from 11 million to 11.5 million barrels per day, which will allow us to increase production in the second half of 2022,” he added. According to the Deputy Prime Minister, the recovery of business activity, road transport and air travel is pushing the producing countries to a similar increase in the extraction of raw materials.
“It is very important that we behave responsibly and provide opportunities for economic recovery around the world. As of today, we note a deficit in the market, which is why it was decided to increase it monthly by 400 thousand barrels per day. In addition, the forecast for the growth of the world economy has been adjusted to 5.5-6% this year, ”the Deputy Prime Minister added.
The next ministerial meeting of the OPEC + countries will take place in early September this year.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.