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Russia’s Energy Ministry does not see conditions for new OPEC+ deal right now

The energy minister said that Russian oil companies can restore oil production reduced by the OPEC+ agreement in April 2020

Russian Energy Minister Alexander Novak Sergei Bobylev/TASS

Russian Energy Minister Alexander Novak

© Sergei Bobylev/TASS

KOSTROMA, March 13. /TASS/. The possibility of concluding a new OPEC+ deal was not discussed on March 12 at a meeting of Russian Energy Minister Alexander Novak with oil companies, he said on Friday. He added that he does not see conditions for a new agreement at the moment due to the actions of OPEC partners.

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"We did not discuss this. We do not see conditions for such proposals (on a new agreement - TASS). We do not see conditions forming. You see how OPEC participants behave, therefore, movement is hardly possible against this background," Novak said.

He added that Russian oil companies can restore oil production reduced by the OPEC+ agreement in April 2020 - by 200,000 barrels per day, further growth will take time. "We can restore production that was reduced due to the OPEC+ agreement against October 2018 quite quickly. As for additional production, it will take some time to ensure investment expenditures," he said.

"I think the full volume, which was reduced, 200,000, can be restored," the minister added.

At the talks on March 6, the OPEC+ ministers were unable to agree on further parameters of the deal to reduce oil production. OPEC proposed to further reduce production by 1.5 mln barrels per day until the end of this year, but Russia did not agree to this. Starting from April, all production restrictions will be lifted.

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