The supply and demand of oil will reach equilibrium by August or September, Leonid Fedun, the vice president for strategic development at the Lukoil giant, said on Friday
MOSCOW (Pakistan Point News / Sputnik - 05th June, 2020) The supply and demand of oil will reach equilibrium by August or September, Leonid Fedun, the vice president for strategic development at the Lukoil giant, said on Friday.
"I expect that the decrease [of oil production] in the US will reach approximately 3-4 million barrels by August-September, and 1-2 million barrels in Canada, i.e. 5-6 million barrels of North America's oil will disappear from the market. By that time, the demand will have balanced itself out," Fedun told Russia's Kommersant FM radio station.
He added that the OPEC+ deal to reduce the global oil output must be extended for two months.
"If there is no hypothetical new wave of the pandemic, I think the market will be just fine, and it will support our economy a great deal," the vice president stated.
The decrease in energy consumption caused by the ongoing COVID-19 pandemic has led to a slowing of the global economy, limiting the need for resources.
On April 12, the OPEC+ countries agreed to reduce oil production by 9.7 million barrels per day in May and June, followed by 7.7 million per day for the year's second half, and then 5.8 million per day until April 2022.
