MOSCOW: Russia’s energy ministry sees global oil demand and supply balancing in the next two months, it said on its Twitter feed yesterday, citing the minister Alexander Novak.
Leading oil producers are due to hold an online conference in around two weeks on how to further police joint efforts to steady a global oil market hammered by overproduction and a demand drop linked to the coronavirus pandemic.
“For now, the surplus stands at around 7-12 million barrels per day (bpd). The energy ministry is counting on the market to balance out in June-July thanks to a consumption increase,” the ministry quoted Novak as saying at a state council meeting on energy.
The minister also said supply has already dropped by 14m to 15m bpd thanks to the Opec+ deal and output cuts in other countries.
Opec+, a group made up of the Organisation of the Petroleum Exporting Countries and other leading oil producers including Russia, agreed last month to cut their combined output by almost 10m bpd, or roughly 10 per cent of global production. They also expected other large oil producers, such as the US, Canada and Norway, to make additional cuts.
The RIA news agency reported that the energy ministry considers non-Opec+ countries to have already cut output by 3.5m to 4m bpd. RIA also said Russian oil production volumes were near the country’s target of 8.5m bpd for May and June.
Sources have said that Opec and its allies want to maintain existing oil supply cuts beyond June, when the Opec+ group is due to meet next.