Oil market balanced with OPEC+ decision, new output cuts not needed despite weak China demand - Russian Deputy PMThe world oil market is currently balanced and there is no need for new production cuts at this point, despite the fact that the recovery of oil demand in China has fallen short of expectations, Deputy Prime Minister Alexander Novak told reporters."My view is that the market is now balanced, taking into account previously made decisions, taking into account our reduction, the reductions we've seen in other countries, plus, [there was] the winter period. Now consumption will begin to grow, we'll see how the situation develops," Novak said.Commenting on the drop of oil prices to $80 per barrel and lower, he said the price also responds to indexes on other exchanges. He did not give a price forecast for the future.Demand for oil in China turned out to be weaker than expected, "but this is factored into the forecasts that exist now," Novak said. "In principle, statistics on the economy are coming out constantly there. The recovery is proceeding, though perhaps more slowly than analysts and experts expected," he added.He said there is no need to further reduce oil production right now. "Well, no, of course, because we just made the decision a month ago and it will go into effect in May in those countries that joined voluntarily. So I think this will be a good support if the balance is not in favour of demand and supply," Novak said.OPEC+ countries do not expect an oil shortage like the International Energy Agency, among others, is forecasting, he said."No, we don't expect. This was after all calculated in terms of the balances that the team presented - the OPEC+ secretariat together with the group that prepares the material. So this takes into account overall balances. We always have the possibility to adjust if there are suddenly some sort of changes on the market," Novak said.Commenting on the decisions of a number of OPEC+ countries to voluntarily cut oil production from May to December 2023, Novak said it was primarily countries "that meet their obligations" that joined the cut. Some countries cannot increase oil production to their allowed levels.Novak did not forecast by how much lagging countries might fall further behind, remarking that they could also increase production. "We can't forecast this. Maybe they'll increase, they have this option according to their quota," he said.A number of OPEC+ countries announced a voluntarily agreed oil production cut in early April. Russia, meanwhile, extended its decision to reduce output by 500,000 bpd from the February level, which was initially supposed to be in effect to July, until the end of the year.As a result, the overall output cut as of May will be about 1.657 million bpd, with production being reduced by 500,000 bpd in Saudi Arabia, 78,000 bpd in Kazakhstan, 211,000 bpd in Iraq, 144,000 bpd in the United Arab Emirates, 128,000 bpd in Kuwait, 48,000 bpd in Algeria, 40,000 bpd in Oman and 8,000 bpd in Gabon.The IEA estimated that OPEC+ countries produced 37.94 million bpd in March, 2.16 million bpd less than the 40.1 million bpd they could have under their agreement. Compared to February, these countries cut oil production by 460,000 bpd. (ICE ALMATY)

Fonte notizia: INTERFAX