Stability is needed in the global oil market with no immediate need to intensify oil production cuts under the framework of the OPEC+ agreement, according to the president of Russian energy company Lukoil on Thursday.
Vagit Alekperov’s comments come before the upcoming OPEC+ meeting in December when it is anticipated that deeper cuts to the OPEC+ oil pact could be agreed. Alekperov told Russian news agency TASS at the Russia - Africa economic forum that a decision on the cuts should be taken after the winter period. "We believe that the market is stable today,” Alekperov said, adding that he anticipates that the price will average around $60 per barrel in the mid term.
All countries are showing an increase in industrial production, an example of which is in the U.S. with more than 2% rise, and therefore, he does not foresee any global economic slowdown that would negatively impact oil demand. In line with the OPEC+ deal on Dec. 7, 2018, Moscow agreed to lower its oil production by 228,000 bpd, while OPEC and its allies promised to reduce total output by 1.2 million bpd to prop up oil prices. The agreement was later extended until the end of March next year.
In September, Russia could only meet approximately 90% of its oil reduction target that was set in the OPEC+ agreement. In December 5-6 177th OPEC meeting will be held in Austrian capital Vienna.
(Anadolu Agency)
