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Russia’s Lukoil says OPEC+ oil deal has long-term horizon, RBC reports

Leonid Fedun, a major shareholder and vice president of Russia’s No. 2 oil producer Lukoil LKOH.MM, said on Monday the OPEC+ deal aimed at balancing oil markets had a long-term horizon.

The Organization of the Petroleum Exporting Countries, Russia and other producers, known as OPEC+, have agreed to curb their joint oil output to tackle the falling demand amid the pandemic. The current deal lasts until April 2022.

“We have to admit that the OPEC+ deal is for a long historical horizon. Maybe, in the new climatic reality, it’s even forever,” Fedun, who backs cooperation with OPEC, told RBC media outlet.

OPEC+ agreed to gradually ease its cuts, now running at about 7 million barrels per day (bpd), by 350,000 bpd in May, another 350,000 bpd in June and further 400,000 bpd or so in July.

In addition, Saudi Arabia said it was phasing out its extra voluntary cuts by July, a move that will add 1 million bpd over the next three months.

Russia long hesitated to join forces with the OPEC before striking a deal to restrict production in 2016.
Source: Reuters (Reporting by Vladimir Soldatkin; Editing by Edmund Blair)

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