OPEC+ Sees No Need to Cut Oil Output Further- Russia

OPEC+ Sees No Need to Cut Oil Output Further- Russia
Alexander Novak Russian Deputy Prime Minister

OPEC+ Sees No Need to Cut Oil Output Further- Russia

Major producers in the oil group –the Organisation of Petroleum Exporting Countries (OPEC) and allies (OPEC+) do not see the need for further production cuts, Russian Deputy Prime Minister Alexander Novak said on Thursday.

Speaking to the reporters in Moscow, Novak said that given the current balanced market, the group does not foresee further cuts amid falling oil prices, but said the group is always able to ‘tweak its policy.’

‘OPEC+ producers do not expect oil shortages on the global oil markets after production cuts,’ he added.

‘Because we only made a decision on a reduction a month ago, and it will come into force in May for those countries that have joined,’ he said. According to Novak, Russian oil and gas condensate output will fall to roughly 515 million tonnes this year, down from 535 million tonnes in 2022.

The deputy prime minister had warned that Russia would ban the supply of oil and petroleum products to countries that adhered to the price ceiling imposed by Western countries.

Russian officials had said they would reduce oil production early this year by up to 700,000 barrels per day (bpd). Following this, a surprise decision by some OPEC+ countries was made to cut output by another 1.6 million bpd on top of their existing 2 million bpd cuts.

Russia quickly followed suit, announcing that it would extend the existing 700,000 bpd output cuts until the end of the year.

US says Iran seized oil tanker

Iran has seized Marshall Islands-flagged oil tanker in the Gulf of Oman, the US military said on Thursday. The vessel, Advantage Sweet, was seized by Iran’s Islamic Revolutionary Guard Corps Navy (IRGCN) ‘while transiting international waters in the Gulf of Oman,’ according to a statement by the US Naval Forces Central Command.

The tanker issued a distress call during the seizure, it added. ‘Iran’s actions are contrary to international law and disruptive to regional security and stability,’ the US Navy said, urging Tehran’s release of the oil tanker.

The statement said ‘Iran’s continued harassment of vessels and interference with navigational rights in regional waters are a threat to maritime security and the global economy.’

Iran has ‘unlawfully’ seized at least five commercial vessels in the Middle East in the past two years, according to the US Navy. #OPEC+ Sees No Need to Cut Oil Output Further- Russia

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