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All OPEC+ countries fulfil their obligations to voluntarily cut oil output — Novak

The Russian deputy prime minister also stated that Saudi Arabia lowered production by 1 mln barrels per day while Russia reduced export oil shipments by 300,000 barrels per day

MOSCOW, October 4. /TASS/. All OPEC+ countries, including Russia, that have declared extra voluntary limits in oil production are fully meeting their obligations, Russian Deputy Prime Minister Alexander Novak said in an interview with Rossiya-24 TV channel following a meeting of the OPEC+ monitoring committee.

"We discussed and confirmed that the agreements that were reached on an additional reduction of 1.7 mln barrels per day voluntarily by the countries participating in the agreement are being implemented in full," he said.

Novak also stated that Saudi Arabia lowered production by 1 mln barrels per day while Russia reduced export oil shipments by 300,000 barrels per day. These measures will remain in effect until the end of the year.

"Russia is fulfilling its obligations. We have always been committed to the obligations that we take on, and August and September are no exceptions," he said. "And of course, Saudi Arabia, having announced an additional reduction of 1 mln bpd to what was accepted under quotas, fulfills its obligations and has made a significant contribution to the situation with balancing the market," Novak said.

He added that OPEC+ members agreed to keep monitor the oil market. "At the next meeting in November we will look at the current situation and, if necessary, we will adjust the relevant decisions," Novak said.

Novak also said that the global oil market is currently balanced owing to efforts of OPEC+ countries and this year sees a record-high incremental growth of oil demand supported by appropriate supplies.

"Such joint efforts [of OPEC+ countries] resulted in the market being balanced. We see the demand at present is rather high during the summer and fall period; it is supported by the required offer. By the way, the record-high increase of oil demand is observed this year across the globe in general - 102.4 mln barrels daily, with incremental growth of 2.4 mln barrels [per day]. This is very sound; it was about one million barrels per day before," Novak said.

At the same time, wholesale fuel prices have dropped in almost all Russian regions after introduction of the export ban, he said. The ban on exports of gasoline and diesel fuel positive influenced the domestic market situation and the drop in exchange prices by 16-20% already led to their lowering in the small wholesale segment, the official said. "We see a significant decline in wholesale petroleum product prices in almost all Russian regions. This is the criteria, the result needed to be achieved," Novak said.

The Russian government introduced the temporary limit of gasoline and diesel fuel exports to stabilize the domestic market from September 21.

Several OPEC+ countries, including Russia and Saudi Arabia, have agreed to reduce oil production by 1.66 mln bpd from May 2023 until the end of 2024. Furthermore, Russia and Saudi Arabia affirmed the continuation of additional market-balancing steps. As a result, Saudi Arabia will continue to restrict oil production by 1 million barrels per day through the end of the year. Russia will continue to cut oil supplies by 300,000 barrels per day.