Russian energy minister says oil market could face a deficit in July
Russian Energy Minister Alexander Novak said on Thursday that the OPEC+ group of oil producers is expected to start easing oil output cuts from August as previously agreed.
He also said the global oil market might achieve a balance between supply and demand in July and could even face a shortage of crude, while oil consumption may not recover to pre-crisis levels before the end of 2021.
OPEC+, including Russia, agreed to reduce their combined oil output by around 9.7 million barrels per day, or some 10% of global consumption, to tackle the fallout from the coronavirus pandemic.
Record cuts were meant to last until the end of June but have been extended into July.
Key OPEC+ ministers will meet in mid-July at a panel, known as the Joint Ministerial Monitoring Committee (JMMC), to recommend the next level of cuts.
Novak told an online conference of experts on Thursday that no decision has been made yet about the future of the deal.
"We will have a partial resumption of the unprecedented cuts starting from Aug. 1," he said.