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Oil market may recover to pre-crisis levels in 2021, says Novak

Russian Deputy Prime Minister Alexander Novak said that global demand for oil in 2021, according to optimistic forecasts, may grow by 5-6 million barrels per day

MOSCOW, December 28. /TASS/. The emergence of coronavirus vaccines on the global market is helping to restore oil demand, and the market may return to pre-crisis parameters during 2021, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya 24 TV channel.

"Before the end of 2020, we have already seen a recovery in demand, but, nevertheless, we did not reach the parameters that we had before the crisis. We hope that throughout 2021 we will, however, reach pre-pandemic figures," he said.

Novak added that global demand for oil in 2021, according to optimistic forecasts, may grow by 5-6 million barrels per day. "Today, demand has not yet recovered by about 7-8 million barrels per day compared to the pre-crisis period. Although, in general, I have already said that, the decline was much bigger, and this year most of it [demand] has already recovered. Next year, we expect additional growth in demand of about 5-6 million barrels [per day]. This is an optimistic forecast," he said.

At the same time, according to him, construction of the Nord Stream 2 gas pipeline is "at a high degree of readiness," it will be completed, as the European partners are interested in it. "Nord Stream 2, is at a high degree of readiness. This is a commercial project our foreign partners, European partners, are primarily interested in, namely - in the delivery of a highly environmentally friendly energy source. I am confident that Nord Stream 2 will be completed, all the more, measures are already being taken to complete it," he said.

Novak noted that the sanctions against this project that are being discussed now are negative for commercial projects.

"It will be necessary to somehow adjust, if such measures are taken by countries that are trying to stop the implementation of such projects. There are such measures indeed. We will continue to work, as we worked in these conditions," he added.