MOSCOW, January 5. /TASS/. Russia's position on restoring oil production under the OPEC+ deal is explained by the request of Russian oil companies. At the same time, it is necessary to be careful returning to the initial production volumes, Russia’s Deputy Prime Minister Alexander Novak said at a press conference following the meeting of the OPEC+ countries.

"In the long term, you need to gradually move forward, towards restoring the production volumes that was very much reduced in relation to the normal level - this is the request of the industry, oil companies," he said, answering a question from TASS.

"We must do this (increase oil production - TASS) very carefully," Novak added.

According to him, the worst situation for the global oil market has passed, even new strains of coronavirus and restrictive measures allow the oil market to recover. "We see that the worst situation is already behind us - this was April - May last year. The demand is gradually recovering, despite all the uncertainties and new lockdowns," he said.

Novak pointed out that Russia expects the situation on the oil market to improve in April and the country will be able to continue to recover its production level under the OPEC+ agreement

"We made a decision only for 2 months, then we will look at what will happen in April and make decisions for April. We agreed that we will meet in March for a ministerial meeting. I hope that the situation in 2 months will be even better," he said.

"We are more optimistic given the vaccinations that are taking place in many countries, so we hope that with this in mind, we will have opportunities to continue to recover production, but this should happen as demand rises," Novak added.

Saudi Arabia's decision

Saudi Arabia's decision to further cut oil production in February and March as part of the OPEC+ deal is a New Year's gift to the global oil market, Russia’s Deputy Prime Minister said.

"Only one person knew about this (about the decision to further cut oil production - TASS), apparently him (Saudi Arabia Energy Minister Prince Abdulaziz bin Salman Al Saud - TASS). Therefore, this is a New Year's gift for the oil market, which is overflowing today, in order to reduce the remains (of oil reserves - TASS) at a faster pace," Novak said.

"Of course, we believe that Saudi Arabia is making a big, significant contribution to the situation with the restoration of normal levels of reserves in the world markets," he added.

Oil production in November

The deal to cut OPEC + oil production in November 2020 was completed by more than 100%, Russian Deputy Prime Minister noted.

"We have summed up the results of the deal’s execution for the previous period, which is November. The level was very high - over 100%," Novak said. He noted that the OPEC+ countries demonstrate their commitment to the implementation of the decisions.

The OPEC+ countries agreed on the oil cuts parameters in February and March, which will amount to 7.125 mln bpd. Now the countries of the alliance are cutting production by 7.2 mln bpd against the base level. Russia and Kazakhstan in February and March will increase production by 75,00 bpd - by 65,000 bpd and 10,000 bpd, respectively. This increase in production will be offset by proportional and voluntary production cuts by Saudi Arabia.