FX.co ★ OPEC+ pact to maintain balance in oil market

Russia’s Vice Premier Alexander Novak believes that the valid OPEC+ deal on oil production cuts contributes to the supply and demand balance in the global oil market. The policymaker underscores the importance of compliance with its terms.

Citing the official, Russia has complied more than 100% with its individual quota of output cuts over the last three months. Alexander Novak acknowledged that Russia is faithful to its obligations under the pact and called on other participants to meet their commitments.

The Russian Vice Premier said that the cartel and its allied should not neglect all factors of uncertainty which still overshadow prospects of the global oil market. Alexander Novak does not rule out that OPEC and other major oil exporters will have to develop other proposals to stabilize the market and oil prices.

The Russian official said that the energy sector and air companies require the most attention from the government amid the post-pandemic crisis. In the meantime, passenger air lines have slashed their flight schedules due to travel restrictions. So, business trips have been replaced with video conferences.

Under such grim headwinds, major oil exporters have to pinpoint all complicating factors to cushion their adverse impact, Alexander Novak comments on. He points out that joint efforts of the global community to contain the COVID-19 pandemic and successful trials of vaccines are sure to resolve the aftermath of the crisis.