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OPEC+ decision on monthly output increase by 0.4 mln bpd adequate, says Novak

Russian Deputy Prime Minister noted that despite the fact that the coronavirus was still there, the demand for oil was rising

MOSCOW, July 30. /TASS/. The decision of OPEC+ nations to further increase crude production by 0.4 mln barrels per day each month starting August is adequate despite the coronavirus situation, Russian Deputy Prime Minister Alexander Novak told reporters.

"It is fairly adequate, the demand is rising, despite the fact that the coronavirus is still there, various waves subside everywhere. Nevertheless, [it is] commonly understood that there are no longer any lockdowns as previously," he said when asked whether the recent OPEC+ decision is too aggressive.

The recovery is notable in terms of the level of oil consumption, Novak said. "That is why it is necessary to provide the market gradually and boost production to bring the demand and supply into balance," Deputy PM added.

After long discussions in the middle of July OPEC+ member-states decided to ease production cuts. They will bring 2 mln barrels per day back to the market by the end of this year starting August. They also agreed to extend the agreement by the end of 2022.

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