MOSCOW (Sputnik) – Global oil demand will reach pre-crisis levels in early or mid-2022, Russian Deputy Prime Minister Alexander Novak said on Thursday.
According to the consolidated assessment of the participants in the OPEC+ deal, the global economy will grow approximately 4.5-5.5 percent in 2021, and oil demand will grow by 5.5 million barrels per day this year.
Novak also argued that OPEC+ members, when making a decision on the future volume of oil cuts, have to consider both the positive impact of worldwide vaccination as well as the remaining COVID-19 uncertainties.
Even though the pace of global vaccination is high, some energy agencies have revised down their demand forecasts, the Russian deputy prime minister noted.
Russia Complies With the Deal 100%
The deputy prime minister noted that Russia has always complied with the OPEC+ deal in accordance with its obligations, and in February compliance was above 100 percent.
“As for February, we reached a level slightly above 100 percent. In March, we continue to fulfill our obligations, taking into account the decisions that have been made to gradually restore production for Russian companies,” he added.
Russia is still increasing oil production in the framework of OPEC+ at an outstripping pace, but when demand recovers, it will fit into the common schedule, Novak said.
At the same time, Saudi Arabia has decided to extend its additional voluntary oil production cut of 1 million barrels a day into April as well.
In the meantime, OPEC+ states have decided to postpone the deadline for making up production cuts until the end of July, the organization’s statement said.