Russia fulfils its OPEC+ oil commitments in full, Novak says

Russia is in full compliance with its commitments to reduce oil supplies as part of the OPEC+ producer group’s deal, Russian Deputy Prime Minister Alexander Novak said on Wednesday.

His comments come after a meeting of top OPEC+ ministers kept oil policy unchanged and pressed some countries to boost compliance with output cuts, a decision that spurred international crude prices to their highest in five months at nearly $90 a barrel.

Novak said the countries participating in OPEC+ had confirmed a high level of compliance with oil supply curbs.

Last month, Russia said it would cut its oil output and exports by an additional 471,000 barrels per day (bpd) in the second quarter in coordination with some OPEC+ countries.

“Russia is fulfilling its obligation in full,” Novak said in televised remarks.

Novak later confirmed analysts’ and Reuters’ calculations that Russia’s oil output quota will stand in June at 9 million bpd, down from around the 9.5 million bpd it was producing in February, once the promised output reductions have been reached, TASS news agency separately reported.

He also said the tools aimed at balancing the oil market were working and OPEC+ would take decisions to ensure global oil market stability.

When asked about the tensions in the Middle East and rising oil prices, Novak replied: “We have discussed the market situation on the whole and the factors which influence, this way or another, the supply and demand balance, including economic growth.”

“Of course, that includes triggers, which we are seeing in the Middle East, the tensions are having an impact on the market … The oil prices have increased to $89 per barrel today,” he added.

Oil prices extended gains on Wednesday, as investors mulled supply risks stemming from Ukrainian attacks on Russian refineries and the potential for escalation in the Middle East conflict.

Novak also said that, according to TASS, Russia has capacity available to boost fuel production to offset the effects of drone attacks and technical outages.
Source: Reuters (Reporting by Vladimir Soldatkin and Olesya Astakhova; Editing by Mark Potter)