In the 4th quarter, the oil price may be volatile due to demand, but the fluctuations are unlikely to be significant, said Russian Energy Minister Alexander Novak in an interview with Naila Asker-zade on the Russia1 channel.
“For the last 3 months we have seen a more or less stable situation in the oil market, price fluctuations at about $ 40-45 per barrel. Of course, a lot will depend on demand in the 4th quarter. And we hope that the balance will be maintained. including thanks to the actions that exist today and are being carried out by the OPEC + countries. Therefore, volatility is possible, but, in my opinion, it will not be significant, “he said.
According to him, demand will become the determining factor in the oil market.
“The most important factor is the pace of recovery in demand for oil, for oil products, as well as the recovery of the world economy. We have not yet reached the figures for consumption before the crisis. In particular, for commercial air transportation, the level is only about 70%, road transportation is about 90-95%. There is less activity of people, “Novak noted.
“Therefore, the recovery is proceeding at a slightly slower pace than originally planned. The return to the average five-year values of oil reserves in the world will be in the II quarter of 2021. Today we are seeing a deficit in the market, the recovery in demand will be influenced by factors such as the possibility of a second wave coronavirus, “the minister summed up.