UPDATE: Novak: All oil producers should join forces to cut oversupply

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MOSCOW, Apr 9 (PRIME) -- All the world’s crude-producing states should joint their forces to reduce market oversupply, Russian Energy Minister Alexander Novak said at a meeting of OPEC and non-OPEC states, broadcasted by Rossiya 24 television channel on Thursday.

“In these conditions, we need instant and timely measures and we need to pull together our efforts, of all oil producers, to change the situation, linked to substantial global overproduction of oil,” he said.

Russia believes that more countries should participate in stabilization of the global crude market, Novak also said.

“We think it is reasonable that the number of states, participating in joining forces to stabilize the global situation, should increase. We again acclaim participation of our colleagues, who used not to take part in OPEC+ meetings earlier,” he said.

“I would like to greet our colleagues taking part in the video conference, the colleagues from Canada, Norway, Egypt, Argentina, Columbia, Indonesia, Chad, Ecuador, Trinidad and Tabago.”

Novak said that a fall in global crude demand is seen at 10–15 million barrels per day, and it may deepen in the nearest future, while the global reserves rise.

OPEC Secretary General Mohammed Barkindo said that imbalance of supply and demand may cause global crude oversupply of 14.7 million barrels per day in April–June.

OPEC estimated the current fall in oil demand due to the spread of coronavirus at 6.8 million barrels per day, and expects the decline to deepen to 12 million barrels per day in April–June. The organization has decreased its forecast for the rise in oil production by non-OPEC states in 2020 by over 1.5 million barrels per day, but it is incomparable to the fall in global demand, Barkindo said.

The world may run out of free oil storage space already in May, he also said and called on the participants to take rapid action to stabilize the oil market.

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