MOSCOW (Pakistan Point News / Sputnik - 01st April, 2021) The situation in the oil market has improved lately as the market is currently short of about 2 million barrels a day (mbd), however, it is important for the OPEC+ countries to prevent the deficit from escalating, Russian Deputy Prime Minister Alexander Novak said on Thursday.
"From the last time we met, the situation has significantly improved and we are seeing more and more positive dynamics. Thanks to the cooperation and to the joint effort which we have been exerting ... currently we estimate that the market is short of about 2 mbd of production which has led to a significant reduction in inventory," Novak said at the opening of the OPEC+ meeting.
As the alliance of OPEC and non-OPEC oil producers seeks to keep the market balanced, it also needs to prevent the emergence of a huge deficit, the deputy prime minister noted.
The OPEC+ Joint Ministerial Monitoring Committee (JMMC), which convened on Wednesday, now expects that the oil demand in 2021 will grow by about 5-5.5 mbd year-on-year, Novak added.
At the same time, Novak's counterpart in the OPEC+ meeting, Saudi Energy Minister Prince Abdulaziz Bin Salman Al Saud, in his remarks at the opening of the OPEC+ meeting, was less optimistic in appraising the situation in the oil market and urged a cautious approach.
The OPEC+ countries, led by Russia and Saudi Arabia, later in the day will decide whether to ease the oil production cuts further or keep the March level of quotas in place as the COVID-19 uncertainties still shadow the demand growth.
