Novak: Possible increase in oil production in OPEC+ framework still being analyzed

MOSCOW. May 7 (Interfax) - The possibility of increasing oil production within the OPEC+ framework is still being analyzed, Russian Deputy Prime Minister Alexander Novak told Interfax, answering a question as to whether there are prerequisites for increasing oil production.

"It always depends on the current situation; the balance of supply and demand. Everything is analyzed. Now there is no need to forecast anything. We need to look at how the market is feeling," he said.

Earlier, Novak reported that Russia, instead of reducing exports of oil and petroleum products, is voluntarily reducing oil production in Q2 2024 together with a number of OPEC+ countries due to the need to match the contribution to production reductions from other countries.

Therefore, Russia must reduce oil production to 9 million barrels per day by July, which will correspond to the level already maintained by Saudi Arabia.

"But I want to say that we are constantly monitoring the situation, and this is our plan for the second quarter. I agreed with our colleagues that these voluntary cuts can be adjusted if necessary (..) with a move towards increasing supply. This is a constant process," Novak said.

Meanwhile, most analysts surveyed by Bloomberg expect a number of OPEC+ countries to extend their 2 million bpd cuts, possibly right through to the second half of the year. A few analysts forecast production increases of as much as 1.1 million bpd.

The OPEC+ Ministerial Monitoring Committee and a full-format ministerial meeting will be held on June 1. However, OPEC+ "volunteers" do meet and make decisions without waiting for full-format meetings.