Russian Deputy Prime Minister Alexander Novak confirmed that the oil market is balanced at the present time, and there is no need for an additional reduction in oil production by the “OPEC +” countries.
Black gold production in Russia
In remarks he made to reporters today after a meeting of the Board of Trustees of the Moscow Energy Institute, the Russian Deputy Prime Minister stated that Russia will this year reduce oil and gas condensate production by 20 million tons to 515 million tons.
At the end of 2022, oil production in Russia reached 535 million tons, an increase of 2% over 2021, while exports grew by 7%.
Regarding the reason for the decline in refining black gold in Russia, he said that the current decline in oil refining in Russia is due to maintenance in refineries, stressing that the needs of the local market are fully met.
Novak: The oil market is balanced after the “OPEC +” cuts
The Russian Deputy Prime Minister indicated that there is no reason for an additional reduction in oil production within the framework of “OPEC +”, and he also ruled out that the global oil market would face a shortage of supplies due to production cuts.
In response to a question about whether there was a need for an additional reduction in production by the “OPEC +” countries, the Russian Deputy Prime Minister said: “No, we made a decision only a month ago, and it will enter into force from next May.”
And the Russian Deputy Prime Minister pointed out that “OPEC +” can adjust the size of oil production cuts, if necessary.
What happened to energy supplies from Russia to Europe after the European embargo?
The Russian Deputy Prime Minister indicated that this year Russia will redirect 140 million tons of oil and petroleum product exports from Europe to Asia, and said that “supplies in 2023 will be at 80-90 million tons, down from 220 million tons in 2022.”
The Russian official added that Russia has already redirected about 40 million tons of oil and petroleum product exports from Europe to Asia.