Russian President Vladimir Putin said yesterday the Opec+ group of leading oil producers including Russia projects rising global demand especially in the summer months, in comments suggesting the bloc may continue with large output hikes.
The Organisation of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing a bigger-than-expected output rise for May despite weak prices and slowing demand.
Opec+ has since decided to continue with hikes above what was planned.
“The volumes of crude oil and oil products consumed in the world are rising due to the growth of the economy itself,” Putin said at a televised meeting with reporters.
“Production is increasing only in the volume that we agreed upon within the framework of Opec+, and it is designed for increasing demand, especially in the summer,” he said.
Putin also addressed Europe’s plans to tighten sanctions against Russia, including cutting the price cap for Russian oil to $45 per barrel from $60 per barrel.
“The more the sanctions, the worse for those who introduce the sanctions,” Putin said, adding it was impossible to “shut down” Russia’s oil and that the sanctions will not have a significant impact on Russia.
A group of eight Opec+ countries which include Saudi Arabia, Russia, Kuwait, Iraq, the UAE, Kazakhstan, Oman and Algeria will meet online on July 6 to discuss their production policy.
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