Russian Energy Minister Alexander Novak said on the air of the Russia 24 TV channel that the overall reduction in oil production in August under the OPEC + agreement amounted to 7.8 million bpd, or 101% of the fulfillment.
“This is a large figure, the compliance was 101%, in contrast to July, then it was 95%. August showed that countries approached more responsibly in the implementation of the agreement, and this is encouraging, because it allows us to see the results that we see on the market Today. The stocks are gradually decreasing, accumulated during the second quarter. And we see that it is already July and August – the first two months, when the accumulated balances are gradually decreasing, “the minister explained.
As Novak said, the reduction of commercial oil reserves in August amounted to 45 million bpd, in July – 34 million bpd.
“If the trend continues, we expect the market to be able to return to the 5-year average for reserves,” the minister said.
“Of course, a lot will depend on demand, on how the world economy will recover, what measures will be taken by countries in the future to prevent a second wave of coronavirus. This was also the subject of discussion today,” Novak commented.
“We noted that the agreement is fulfilling its role. It is absolutely correct that it was adopted in April this year. Accordingly, it will act further within the framework of these agreements that have been reached,” the head of the Russian department stressed.
Novak also said that the ministers of the OPEC + countries confirm that the countries will fulfill the agreements to reduce oil production. “There are always different situations in different countries. We always look at the aggregate. In individual countries there are some deviations from 100 percent (compliance), but in general, all ministers confirm that their countries will fully comply with the agreement. And this is also confirmed figures – 101% of the total execution (in August) indicates that we are generally committed to the overall implementation of the agreement, “the minister said.
“For those countries that made certain deviations, it was confirmed that they will be in these volumes in the future, and for some countries already in the previous month, this happened, to reduce more in order to catch up with the performance that should be in accordance with the announcement We do not see any problems here. And of course we understand the situation and we meet halfway. But in general, the main thing is that there is a common attitude to fulfill in full, “he said.