Oil market still fragile, OPEC+ deal should be 100% implemented - Russia’s energy minister

Oil market still fragile, OPEC+ deal should be 100% implemented - Russia’s energy minister
  • Clock-gray 01:27
  • calendar-gray 07 June 2020

The global oil market, in spite of the emerging signs of recovery, is still fragile, so all the participating parties should remain committed to the OPEC+ deal, Russian Energy Minister Alexander Novak said at the OPEC-non-OPEC Ministerial Meeting on Saturday, APA reports citing TASS.

"April 2020 was probably the worst month for the oil market," Novak said. "Gradual easing of quarantine measures and a partial recovery of the economy have led to a growing oil demand. We can see a positive effect from the joint efforts to cut production."

"Nevertheless, it is worth mentioning that the market is still fragile and needs support. That is why today, in my opinion, it is more important than ever to implement 100% of the commitments taken by all the participating countries," the minister stressed.

Earlier in the day, 13 members of the Organization of the Petroleum Exporting Countries (OPEC) held a meeting to agree the extension of current oil output cuts (9.7 million barrels in May-June) until the end of July.

Apart from that, according to the OPEC final declaration (which copy is obtained by TASS), any country that fails to implement 100% of its output reductions in May and June under the OPEC+ deal will have to make extra cuts from July to September.

The joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) is expected to meet monthly until the end of December 2020.

apa-logo-mini

Other news