• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 3 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
M&A Fever Hits Canada's Oil and Gas Industry

M&A Fever Hits Canada's Oil and Gas Industry

The mergers and acquisitions wave…

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Megamerger Mania Set To Shake Up Latin America’s Oil and Gas Industry

Enauta's strategic acquisitions and proposed…

U.S. Oil Is Stealing Market Share from OPEC+

U.S. Oil Is Stealing Market Share from OPEC+

U.S. oil is encroaching on…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Russia Wants OPEC+ To React To Oil Demand Recovery

Gas station

Russia will propose to OPEC+ to react to the recovery in global oil demand, which has now reached 90 percent of the levels seen before the pandemic, Russia's Energy Minister Alexander Novak said on Wednesday.

"We hope for speedy demand recovery and will propose to react to it under OPEC+ deal," Reuters quoted Novak as saying.

Speaking at an online meeting to discuss Russia's oil and gas industry, Novak said, as quoted by the TASS news agency, that Moscow hopes there would be faster demand recovery, to which it would react within the OPEC+ pact.

According to Russia's energy minister, global oil demand will return to pre-pandemic levels at some point in 2021.

If it weren't for the OPEC+ deal – in which Russia is the largest non-OPEC contributor – oil prices would have been $10-20 a barrel, and at times even negative, Novak said, noting that the record production cuts stabilized the oil market and prices.

As part of the OPEC+ deal, Russia's oil production will drop by 13.8 percent year-on-year between August and December 2020, Novak added. Russia's full-year oil production will be 10 percent lower in 2020 than it was in 2019, he said.

In August, when OPEC+ started easing the record cuts by 2 million bpd, Russia's oil production rose by 5 percent from July, to reach 9.86 million bpd, according to Reuters' estimates of energy ministry data in tons.

Russia's production figures include condensate, while the OPEC+ deal excludes it. Considering Russia's condensate production of around 700,000 bpd-800,000 bpd, and Russia's crude oil production ceiling of 9 million bpd as of August 1, the figures show that Russia produced slightly more crude oil than its quota, according to Reuters estimates.

Pavel Zhdanov, Vice President for Finance at Russia's second-largest oil producer, Lukoil, told Reuters, "Our experience with the previous OPEC+ deal and results of the last two months prove that stopped wells could be returned back to operation quickly without losing their productivity."  

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News