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OPEC+ decision to reduce oil production linked to market rebalancing — Deputy PM

According to Alexander Novak, OPEC+ also catered for risks of slowdown in the China's economy

MOSCOW, October 5. /TASS/. The OPEC+ decision to slash oil production is associated with the need for market rebalancing and recession signs in the global economy, Russian Deputy Prime Minister Alexander Novak said on Wednesday on the air with the Rossiya-24 TV Channel.

"This decision is associated in the first instance with rebalancing of the market that enters now the zone of turbulence and uncertainty, especially in the winter season, when the demand falls and the supply should also be adjusted. The second reason [is as follows]. We very attentively discussed today and exchanged opinions regarding development prospects of the global economy. We concur in the opinion that earlier predicted growth rates of the global economy will be 1.5% smaller in 2022; the adjustment also takes place for the year of 2023. The world’s economy is slowing down; signs of recession are in place," the official said. OPEC+ also catered for risks of slowdown in the China's economy, Novak added.

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Alexander Novak

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