Russia’s Deputy Prime Minister Alexander Novak said at the next month’s summit of leading global oil producers that Russia expects OPEC + to support an increase of 500,000 barrels per day in oil production from February. Russia says it supports a gradual increase in production in order not to shake the market.
Oil prices are trading above $ 50 a barrel, despite concerns this week that the rapidly spreading new variants of the coronavirus will lead to a decline in fuel demand.
The Organization of Petroleum Exporting Countries, known as OPEC +, including Russia, and its allies agreed to reduce production to support the global oil market as the COVID-19 outbreak weakened fuel demand. Since the deal on a record global supply cut in April, OPEC + has gradually reduced the cuts and is expected to supply 500,000 barrels of crude oil to the market in January.
The group plans to hold its next online summit on January 4th, and will discuss whether it will release 500,000 barrels per day in February as well. If the situation is normal and stable, this position is very likely to find support.