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Russia sees oil market risks that do not allow bigger output growth

The country expects to see reduced demand for oil in Q4 2021 and Q1 2022

MOSCOW, November 4. /TASS/. The oil market is currently recovering, but Russia sees a number of factors that do not support stronger output growth within the OPEC+ deal, Russian Deputy Prime Minister Alexander Novak said during a press conference following the OPEC+ ministerial meeting.

According to him, the country expects to see reduced demand for oil in Q4 2021 and Q1 2022, the demand for oil is under the influence of the delta coronavirus strain, and the EU countries see a decrease in the consumption of oil products.

"We understand that the market is recovering, and we give additional volumes to the market. At the same time, as you know, during the fourth and first quarter there are seasonal factors of declining demand. In particular, we have already seen a decrease in demand for oil products in the European Union in October," he said.

According to him, the OPEC+ decision on a monthly increase in production by 400,000 bpd will allow adding additional 2 mln barrels by all the deal’s participants as the cumulative total increase from August to the end of 2021. The OPEC+ plan also includes increasing output by 400,000 barrels per day in January and February 2022.

"Today it was decided to maintain in December the parameters adopted earlier, to increase output by 400,000 barrels per day. So, from August to the end of December, additional 2 mln barrels will be added. We have envisaged an increase of 400,000 barrels for January and for February," he said.