Deputy Prime Minister Alexander Novak co-chaired the 47th meeting of the OPEC+ Joint Ministerial Monitoring Committee.
The delegates reaffirmed their commitment to the plan to reduce oil production by two million barrels per day, agreed upon following the meeting on 5 October 2022.
“The most important decision we have made is to maintain the quotas that have been in place since last November. They will be in force throughout 2023. We intend to monitor the situation on the global market online, as well as monitor the deal’s progress. The discussion showed that the current situation on the market is quite stable, and acceptable prices are being formed based on the balance of supply and demand. All this is due to the timely decision taken by OPEC+ in October, to reduce oil production,” Alexander Novak said.
According to Mr Novak, today oil reserves in the world are below the average five-year values, and there are many uncertainties in the oil market related to the level of supply and demand. China, which is emerging from pandemic restrictions, is expected to increase oil consumption. But inflation expectations for the economies of Western countries remain high, which affects the level of demand for energy.
Alexander Novak noted the stable situation on the Russian oil market, despite external restrictions: the EU embargo and price ceilings set by the G7 countries and their allies.
“The situation around the production and export of Russian oil is stable. All the necessary measures have been taken to form new supply chains, find sales markets, and transport oil. On 1 February, a presidential executive order prohibiting the use of phrasing regarding the price caps on Russian oil in contracts, and appended clarifications, came into force. In case they are violated, measures will be taken to prohibit export deliveries to those counterparties that apply caps. It is in Russia’s interests to limit the effect of non-market instruments that can affect not only the sale of Russian oil, but also the situation on the world oil market as a whole,” the Deputy Prime Minister emphasised.
The OPEC+ members agreed to hold the next meeting of the Joint Ministerial Monitoring Committee on 3 April 2023, and the OPEC+ ministerial meeting on 4 June 2023.