UPDATE: Novak: OPEC+ steps keep market stable, compliance at over 100%

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MOSCOW, Nov 17 (PRIME) -- The global crude market is stable thanks to efforts of the OPEC+ alliance, and compliance with the oil output cut deal has been registered at over 100% for three months in a row, Russia’s Deputy Prime Minister Alexander Novak said at a meeting of the OPEC+ monitoring committee on Tuesday.

“Our joint effort has stabilized the market in the critical situation, and the market is now stable thanks to them. The level of compliance (with the deal) has been registered at over 100% for the third consecutive month,” he said.

Russia plans to keep complying with the agreement and fulfilling its obligations, and the other participants need to adhere to the deal as well, especially considering the coming seasonal fall in demand for crude, Novak also said, adding that restrictions imposed during the second wave of the coronavirus pandemic are lighter than they used to be in the spring.

Saudi Arabia’s Energy Minister Abdulaziz bin Salman Al-Saud said that the extended OPEC+ alliance managed to remove 1.6 million barrels of oil from the market in May–October.

Novak said that OPEC+ needs to be ready to adjust the deal if necessary as there is still a long road to the end of the pandemic.

The ministerial monitoring committee said in a final communique that recommendations on the future of the deal will be provided until the next online meeting of the alliance scheduled for December 1. The committee also stressed that the participants should be ready for further steps.

The OPEC+ countries agreed to reduce their oil output by significant 9.7 million barrels per day in May to fight the consequences of the global coronavirus crisis, with Russia’s share of 2.5 million barrels per day. Later, the cut was prolonged at 9.7 million barrels per day for July, and narrowed to 7.7 million barrels per day for August–December, and then to 5.8 million barrels per day until May 2022. The agreement is valid until April 30, 2022, but the members will revise its extension in December 2021.

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