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Russia fully fulfils obligations under oil production cut deal in August, says minister

Energy Minister Alexander Novak noted that the oil market has come close to balancing itself, which is the goal of the OPEC+ deal on oil production cuts

MOSCOW, August 19./TASS/. Russia complies by 100% with its commitments under the OPEC+ deal in August, Energy Minister Alexander Novak said in an interview with Rossiya-24 television on Wednesday.

"We are at a high level. In July, we fulfilled 97% of our level. This is a high figure for us. We have attained 100% in August. As of today, we are fulfilling 100% of the the obligations we assumed in August," the minister said.

He noted that the oil market has come close to balancing itself, which is the goal of the OPEC+ deal on oil production cuts. If the oil market continues to recover at a similar rate, members of the organization will be able to ease the introduced restrictions earlier than planned.

"The situation gives cause for optimism, we have practically reached the results we strived towards on balancing the market. As far as I am aware, the demand has recovered to 90% of the pre-crisis level. At the same time, OPEC+ states, as well as the countries outside of the alliance, have cut down oil production by 12 mln barrels a day. This is what causes the balance. Moreover, in July, the supply was 1 mln barrels a day lower than the demand," the minister pointed out.

"We will have every opportunity to make decisions, namely if the market will be overheating, we will have the opportunity to reduce quotas faster," Novak said, noting that such a scenario is possible if the second wave of the novel coronavirus pandemic can be avoided.