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Russia hopes for oil market recovery in 2021 due to vaccination - deputy PM

Alexander Novak also hopes OPEC+ uses all measures to stabilize market, including production increase

MOSCOW, January 4. /TASS/. Russia hopes that the oil market will recover as early as in 2021 after the worldwide vaccination, Russian Deputy Prime Minister Alexander Novak said at the OPEC+ ministerial meeting on Monday.

"We hope that in 2021 we will be able to see the recovery in demand, including as a result of the vaccination which is already underway in numerous countries," he said.

Novak has pointed out that he hopes for the use under the OPEC+ deal of the mechanisms that have already proven themselves, including the production recovery.

"We hope that we alongside you (the partners at the OPEC+ group - TASS) will be gradually using various mechanisms and instruments that have already proven themselves to make the right decisions aimed at the market stabilization and production recovery, with regard to the balance of supply and demand, which will be forming," he said.

The OPEC and non-OPEC Ministerial Meeting is held on Monday to set oil production limits for February. The OPEC+ monitoring meeting ended earlier in the day without issuing recommendations on oil production volumes. At the previous meeting, held on December 3, OPEC+ ministers agreed to start gradually boosting oil production by not more than 500,000 barrels per day each month, starting in January. The group agreed to convene monthly meetings to negotiate the further growth. In total, OPEC and its allies plan to increase production by nearly two million barrels per day in the first months of 2021. In May 2020, when the renewed OPEC+ deal came into effect, the countries curbed oil output by 9.7 million barrels per day. Since August, the cuts were reduced to 7.7 million barrels per day.

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