OPEC+ cautious decision related to uncertainties, market balance

TASS Russian News Agency | Aug 3, 2022 at 4:59 PM

/Update/

MOSCOW, August 3. /TASS/. The cautious decision of OPEC+ to increase oil production quota by just 100,000 barrels per day in September for all countries in total was taken in view of certain concerns and the unstable market situation, Russian Deputy Prime Minister Alexander Novak said on Wednesday in an interview with the Rossiya-24 TV Channel.

"There are uncertainties on the market that should be addressed. These are, in the first instance, more frequent COVID-19 cases, new strain spread, uncertainties related to disruption of transport chains and introduced restrictions, including for Russian oil and petroleum products. All of them left their mark on the balance and pricing, and that is why such cautious decisions were made today," Novak said.

Oil supply and demand have already recovered to the level before the pandemic, the official noted. "In other words, we reached levels that were before March - April 2020 and see the demand recovery now, including in the People's Republic of China, and improvement of business activity indicators," Novak added.

OPEC+ member-states approved the increase of oil production by 100,000 barrels daily in September earlier today.