Market Situation Reflects Current Oil Prices, Novak Says

Russian Deputy Prime Minister Alexander Novak said on Wednesday, “The current oil prices appropriately reflect the current market situation, while it is widely expected that global oil demand will increase by about two million barrels per day.”

Novak declined to provide further details just one day before an important meeting of key ministers from the Organization of the Petroleum Exporting Countries and its allies, led by Russia, within the framework of the OPEC+ group remotely.

The ministers, who make up the Joint Ministerial Monitoring Committee, may call for a full OPEC+ meeting or make recommendations on policy. Last week, OPEC+ sources said, “The group is likely to decide on its oil production levels for April and beyond in the coming weeks, while it is premature for the Thursday meeting to make decisions on other production policies.”

Novak told reporters, “The market needs silence… Any comment affects the market in one way or another.

I want to say that the current price in the market appropriately reflects the current situation.”

The International Energy Agency, based in Paris, which advises oil-consuming countries, earlier this month forecasted that global consumption would increase by 1.24 million barrels per day in 2024.

This is the third consecutive upward revision in months, but it is lower than the 2.25 million barrels per day predicted by OPEC. Novak also said there are currently no negotiations with Ukraine or the European Union on extending the Russian gas transit agreement, which ends in 2024.

Under the five-year agreement agreed between Moscow and Kiev in 2019, Russia exports gas to Europe through Ukraine and pays Ukraine for the use of its pipeline network. (Reuters)