OPEC One Month Extension Is Logical, Gazprom Neft Head Says

The extension of the OPEC+ transaction is logical since the balance of supply and demand in the oil market has not yet been reached, said the head of Gazprom Neft Alexander Dyukov in an interview with Rossiya-24 TV Channel on Monday, as reported by TASS.

“The balance of supply and demand has not yet been reached; there are still quite a lot of excess reserves on the market that have been formed in recent months. Given the fact that we are just getting out of the quarantine, a month-long extension of the maximum reduction in production is, of course, logical,” said Dyukov.

The OPEC + ministers at a meeting on June 6 via video conference agreed to support the largest-ever level of oil production reduction for another month, until the end of July. Despite unprecedented restrictions, Russia and Saudi Arabia insisted on full compliance with the agreements by all members of the alliance. Countries that did not comply with the deal in May are required to compensate for the missing production cut volume by October.