Report: Exec: Global demand for oil from Russia, OPEC to rise

MOSCOW, May 31 (PRIME) -- The global market will need additional oil from Russia and the OPEC states within a few months or a year as seen in oil demand growth dynamics, Sergei Vakulenko, director of the strategy and innovations department at Gazprom Neft, said in an interview with Nefte Compass magazine released on Thursday.

“Demand for oil has increased significantly over the past year, from 1.4 to 1.7 million barrels per day, according to different estimates. Orders for additional crude from OPEC and Russia will evidently appear, it is a question of a few months or maybe a year,” he said.

Russia’s available capacities amount to around 500,000 barrels per day with a possibility to expand to 700,000–800,000 barrels per day, while Saudi Arabia’s available capacities stand at around 2 million barrels per day, Vakulenko said, adding that the fact comforts those who implement expensive oil production projects.

Russian crude will be in demand even if the current global demand falls by a third, he also said.

Vakulenko expects that members of an oil output reduction agreement of OPEC and non-OPEC states will persist, but output quotas may be revised.

In November 2016, OPEC and non-OPEC states agreed to reduce their oil production to rebalance the market. Russia joined the agreement in December 2016 with a promise to cut output by 300,000 barrels daily compared with the level of October 2016. The agreement was prolonged until the end of 2018 in November 2017.

End