Novak: Russia Has No Plans to Hike Oil Production in April
4/02 7:59 AM
Novak: Russia Has No Plans to Hike Oil Production in April WASHINGTON, D.C. (DTN) -- Russian Federation will not increase crude output this month, maintaining production at a steady 11.29 million bpd even as an agreement with Organization of the Petroleum Exporting Countries has expired, said Russia's Energy Minister Alexander Novak today. The country's decision was guided by the fact that the global oil market is oversupplied and there was no incremental demand for additional barrels due to the pandemic, read comments from the energy minister. Novak's comments follow the first public acknowledgement from the Russian President Vladimir Putin on Wednesday that the seismic decline in oil prices represent "a serious challenge" for the Russian economy and oil industry that will cutoff the investment flow to the industry in the near future. "We, together with the main producers and consumers, will have to develop such solutions that will mitigate the situation on the market as a whole," Putin said at a government meeting Wednesday. The price of international crude benchmark Brent slumped over 50% in March, sending the ruble to a four-year low against the U.S. dollar. Novak said Russia has not yet discussed the oil market situation with Saudi Arabia but did not rule this out. The war for market share between Saudi Arabia and Russia began in early March after Saudi-led OPEC and a group of other oil-producing countries led by Russia failed to agree in deepen production cuts by 1.5 million bpd. Liubov Georges, 1.646.359.4088,, (c) 2020 DTN. All rights reserved.