The way out of the situation on the oil market will last at least until the end of the year – Novak

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out of the current situation in the oil market will last at least until the end of 2020, said Russian energy Minister Alexander Novak in the air of TV channel “Russia 1”.

“We need to experience peak fall demand, and it needs to extend in time the decrease in demand, hence the production decline. I think we will be still long enough to get out of a situation which develops today on the oil market, at least until the end of this year, in the best case”, – quotes its RIA Novosti.

the head of the Ministry expressed the hope that in the coming days, the OPEC deal is to be agreed and signed. According to him, the transaction involves the implementation of two years.

the Position of the Russian Federation regarding the extension of the transaction OPEC+ to reduce production at a meeting in early March was correct and it showed the time, says Novak. He noted that Russia proposed to extend the deal for at least one month, to assess the situation on the market and, if necessary, to adjust their decisions. It turned out to be correct, because the reality is after a month has changed, the Minister explained. He said that the position was agreed by Vladimir Putin.

“If it were not for coronavirus, we are in growing in demand would clearly, in accordance with the proposals studied from Russia, to balance the market and prevent any falling of the prices, no overproduction or deficiency, and to act in the interests of producers and consumers of petroleum products in the world”, – considers the head of the Ministry of energy.

Consumption and an increase in demand for world oil will occur more slowly than it was before the current crisis, says Novak.

“During the crisis, now all realized in order to conduct some meetings, for example, or in contact with each other, not necessarily so much to fly, to drive, and you can do it all in the video mode. Understand that you can make it much more productive today”, he explained.

the Minister also said that the ban on the import into Russia of cheap gasoline is offered as a necessary anti-crisis measure for six months. He added that it is now used by many countries.

“last year, we have gasoline prices increased on the average by about 2% year-on-year, is 2019. Diesel fuel approximately at the same level – below the rate of inflation. I am sure that this year will be the growth rate not above the rate of inflation, and can be simply maintained at the current level,” – said Novak.

OPEC+ agreed on a new agreement to reduce oil production. It will operate for two years beginning may 1.

it is Expected to reduce total production at 10 million barrels per day from October 2018 in may–June, 8 million in the second half of the year and then to 6 million.

While Russia and Saudi Arabia should cut production from the base to 11 million barrels per day to 8.5 million, 9 million and 9.5 million, respectively.

see also

Pot, not vari: as another talks on oil can affect rebleuten welcomed the agreement reached by OPEC+ agreement – Sands Story:the Fall in oil prices and the ruble exchange rate