The global oil market is balanced thanks to the actions of OPEC+ countries and compliance with its quotas, Russian Deputy Prime Minister Alexander Novak said on Friday following a Russia-OPEC meeting.
OPEC+ countries, which are pumping around half the world’s oil, are taking all necessary decisions to maintain market stability, Novak also said after meeting OPEC Secretary General Haitham Al Ghais in Moscow.
“Today, while discussing the situation and forecasts, we assess the current market as balanced. That’s thanks primarily to the actions of OPEC+ countries and coordinated actions to comply with the quotas, voluntary commitments of OPEC+ count,” Novak said.
The meeting comes as OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, prepares to meet on Dec.1.
Sources and analysts said that OPEC+ will have little room to manoeuvre on oil policy when it meets noting it would be risky to increase output because of weak demand, and difficult to deepen supply cuts because some members want to pump more.
OPEC+ had planned to slowly undo production cuts through small increases over many months in 2024 and 2025. But a slowdown in Chinese and global demand, and rising output outside the group, have put a dampener on those plans.
(Reporting by Vladimir Soldatkin and Olesya Astakhova; editing by Mark Trevelyan and Jason Neely)