Global Oil Inventories Surplus Down 34Mln Barrels In July, 45Mln Barrels In August - Novak

Global Oil Inventories Surplus Down 34Mln Barrels in July, 45Mln Barrels in August - Novak

The "surplus" of commercial oil inventories in the world decreased by 34 million barrels in July, and by another 45 million barrels in August, Russian Energy Minister Alexander Novak said on Thursday

MOSCOW (Pakistan Point News / Sputnik - 17th September, 2020) The "surplus" of commercial oil inventories in the world decreased by 34 million barrels in July, and by another 45 million barrels in August, Russian Energy Minister Alexander Novak said on Thursday.

"August showed that the countries were more responsible in the implementation of the [OPEC+] agreement, and this is encouraging, because it allows us to see the results on the market today: the inventories, which were accumulated during the second quarter, are gradually decreasing, and we see it already in July and August," Novak told the Rossiya 24 broadcaster.

"In August, the decline was about 45 million barrels, in July � 34 million barrels. If such trend continues � we discussed this today � in principle, we expect the market to return to the five-year average for inventories. And this is a good trend, this is restoration," he said.

Oil supply in the world is currently less than demand by 1.5-2 million barrels per day, Novak also said.

"Currently, the supply is less than the demand by about 1.5-2 million barrels [per day], which makes it possible to gradually reduce the leftovers. This maintains the balance in the market, this maintains the overall positive situation," the minister said.