Novak: oil demand figures will exceed 100 million b/d in early 2023

Russian Energy Minister Alexander Novak predicted a recovery in global demand in the oil market relative to pre-pandemic levels. He estimates that demand will exceed 100 million barrels per day next year.

Alexander Novak on the air of the Russia 24 TV channel also noted that the countries participating in the OPEC + agreement balance the oil market with their decisions, but do not form oil prices in any way. “We have a flexible tool. And we have a rational approach to how to balance the market. And here the main thing is that we are not talking about the formation of some kind of price, but we are talking about the sufficiency of supply for the market. So that, on the one hand, there is no surplus, on the other hand, there is no shortage, ”added Mr. Novak (quoted by TASS).

As a result of the OPEC + meeting, which took place today, September 5, the countries of the alliance declared on the intention to cut oil production by 100,000 barrels per day in October. Ministers of the OPEC+ countries agreed to hold such meetings at any time in order to respond to the situation on the market.

The day before, the British government reportedthat the G7 countries decided to impose a cap on the price of oil from Russia. G7 finance ministers also supported OPEC’s decision to increase production amid supply shortages and urged oil-producing countries to increase production to reduce market volatility.

In turn, Deputy Prime Minister of the Russian Federation Alexander Novak said that Russia would not supply oil and oil products to countries that would support the establishment of a price ceiling. In the Kremlin reportedthat the introduction of a price ceiling would destabilize the oil market.

Read more about the new restrictions on Russian energy resources in the material “Kommersant FM” “Oil Feeling the Ceiling”.

Milena Kostereva