Report: Gazprom Neft CEO says oil market still unbalanced

MOSCOW, Jun 15 (PRIME) -- The oil market balance has not been reached yet making prolongation of the OPEC+ oil output reduction deal for one month logical, Alexander Dyukov, CEO of Russian oil company Gazprom Neft, said in an interview to Rossiya 24 television channel broadcast on Monday.

“The balance of supply and demand has not been reached yet, the market still has a large amount of excessive reserves formed over the past months. Prolongation of the maximum reduction of production is obviously a logical step taking into account that we are just exiting quarantines,” Dyukov said.

In April, the OPEC+ countries agreed to reduce their oil production by 9.7 million barrels per day in May–June, by 7.7 million barrels per day in July–December, and by 5.8 million barrels per day from January 2021 through April 2022. Russia’s share in the reduction will amount to 2.5 million barrels per day in May–June. The agreement is valid until April 30, 2022, but the members will revise its prolongation in December 2021.

But earlier in June, participants of the OPEC+ meeting agreed to prolong the 9.7 million barrel reduction for July to strengthen the deal’s influence and to reduce risks and uncertainty.

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