Russian President Vladimir Putin’s energy point man said on Tuesday that there was a global need for more volumes of oil and that OPEC+ remained ready to be flexible if needed amid the conflict between Israel and Iran and a trade war.
Crude prices have jumped in recent days on concern of a major war in Middle East after Israel struck Iran, and U.S. President Donald Trump urged people to leave Tehran.
Russian Deputy Prime Minister Alexander Novak said that volatility had been sown in oil markets by the risk of supply disruptions through the Strait of Hormuz, the global economic recovery and the trade wars unleashed by Washington.
“Historically, affordable prices have provoked additional demand for oil with continued global fuel competition. And in general, there is a need for additional volumes of raw materials in the world,” Novak told the Vedomosti newspaper in an interview.
OPEC+ countries, he said, were “in constant contact, monitoring the market situation and are ready to flexibly and promptly respond to any changes in market conditions.”
“If necessary, the transaction parameters can be adjusted in the future to ensure an optimal supply and demand ratio,” Novak was quoted as saying.
(Reporting by Vladimir Soldatkin; Writing by Felix Light; editing by Barbara Lewis/Guy Faulconbridge)