Russian Energy Minister Alexander Novak said today, Wednesday, that global oil demand has recovered by a massive 90% of pre-Corona pandemic levels.
The Russian minister added that Moscow would propose to the OPEC Plus group to take a position on this trend within the global agreement framework to reduce oil production.
Novak expected a full recovery of oil demand sometime next year, but he did not rule out risks from a second wave of the Corona pandemic.
“We will follow the situation and achieve a balance of oil production with the recovery of the global economy … We hope that Demand will recover quickly,” he said.
Russia production :
Novak added that his country’s oil production would decrease from August to December 2020 by 13.8% from previously planned levels.
He expected Russia’s oil production to decrease by 10% to reach 510 million tons this year and said that investments in the Russian oil sector might decrease by 20% this year compared to 1.4 trillion rubles ($ 18.9 billion) 2019.
These statements come at a time when sources and data reported that Russia increased its production of oil and gas condensate last August after easing global production restrictions.
Interfax news agency, citing data from the Energy Ministry, reported that Russia produced 41.7 million tons of oil and gas for last month, or the equivalent of 9.86 million barrels per day, an increase of 5% previous month.
The increase comes after a decision by a group of oil-producing countries “OPEC Plus” to ease crude production restrictions to 7.7 million barrels per day, compared to 9.7 million barrels per day last May.
Russia’s share is currently 9 million barrels per day of oil, so the most recent data indicates that Moscow slightly overproduced last month.