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Russian energy minister expects volatility on oil market to persist until OPEC+ deal start

22 April 2020 17:33 (UTC +04:00)

Russian Energy Minister Alexander Novak expects high volatility on the oil market due to the lack of oil storage space globally to persist until the OPEC+ crude production cut deal starts, APA reports citing TASS.

"We currently see a lot of speculative moments, particularly on futures contracts. As of today, the market exists in uncertainty, which is mainly connected with the fact that crude storage spaces around the globe are projected to be filled," he said during a video conference with the State Duma’s deputies on Wednesday.

Meanwhile Novak expects the situation on the market to improve thanks to the start of the agreement between global oil producers. The total crude output reduction may stand at around 15-20 barrels per day in May. "Such volatility will persist for some time until the OPEC+ deal comes into force on May 1, and measures on easing of restrictions are introduced," he explained.