Novak: Global demand for oil at 93–94% of pre-crisis level

MOSCOW, Dec 9 (PRIME) -- Combined oil demand has recovered by 15–17 million barrels per day from the maximum contraction in April, demand is now only 6–7 million barrels per day lower compared to the precrisis levels, Deputy Prime Minister Alexander Novak said on Wednesday.

“Ac compared with April when demand for oil and oil products fell by about 22–25 million barrels per day, we see partial recovery of the market and demand. It is going on slower than we forecast in the summer, but today contraction of demand stands at only 6–7 million barrels per day. Recovery amounted to about 15–17 million barrels,” he said.

Excessive oil stocks produced in the spring are also falling. Starting from July, the stocks reduced to around 100 million barrels per day as compared with the five-year average figures, he said.

Actions of the OPEC+ alliance helped stabilize the oil prices in a predictable range, and decisions of the alliance meet Russia’s interests. The recent amendment to the deal allows Russia to raise its production by 125,000 barrels per day from January 1, 2021, which will raise combined output by 625,000 barrels taking into account a 500,000 increase in August, he said.

At the same time, the countries outside OPEC+, like the U.S, Canada, Norway, and Brazil have started raising their investment in the oil industry and raising their oil production. The alliance and Russia should monitor that and take balanced decisions in the future, Novak said.

Finance Minister Anton Siluanov said that the decisions of the alliance will allow Russia to replenish budget revenues and maybe even expand the National Wealth Fund.

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