Extension of OPEC+ production cuts may be due to winter drop in oil demand – Novak – Business and Economics

MOSCOW, November 8. /TASS/. OPEC+ countries have decided to extend the voluntary reduction in oil production by 2 million barrels per day until the end of the year due to the winter decline in oil demand, Russian Deputy Prime Minister Alexander Novak said in an interview with the Rossiya-24 TV channel.

He recalled that the principle of work within OPEC+ is to closely monitor the market, monitor supply and demand and make further decisions based on the current situation.

“Therefore, this is absolutely objective, we are still in the winter period and demand is decreasing compared to the summer period, that is, fewer cars consume petroleum products in the winter, the holiday season is ending,” Novak said.

The Deputy Prime Minister emphasized that at the OPEC+ ministerial meeting, the alliance countries will once again analyze the situation on the oil market, discuss forecasts for the first quarter of next year and make a decision based on this information.

Earlier, eight OPEC+ countries postponed the decision to begin restoring oil production for another month, until the end of 2024. Initially, the restoration of production was supposed to begin gradually in October, but in September OPEC+ decided to postpone it by two months until December.

Countries that continue to voluntarily cut production include Russia, Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. Starting in the first quarter of 2024, these countries voluntarily reduce production by 2.2 million barrels per day.