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Baku Energy Forum - Russia expects oil market to return to pre-crisis level in 2022 — Deputy Prime Minister

Russia expects oil market to return to pre-crisis level in 2022 — Deputy Prime Minister

11.12.2021

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Alexander Novak pointed out that the volatility in the oil market was not very high now, but the factor of the new strain had to be taken into account

 Russia believes that the balance of supply and demand in the oil market will return to the pre-crisis level in 2022, Deputy Prime Minister Alexander Novak said in an interview with the Rossiya 24 TV channel.

“We see that the market is recovering. Last year it partially recovered, this year the demand increased by about 6 million barrels per day. I hope that next year 2022 we will reach the balance of supply and demand at the pre-crisis level,” he said.

Novak added that the volatility in the oil market is not very high now, but the factor of the new strain must be taken into account.

“The volatility is not so high (in the oil market), we monitor it every day and make the most appropriate decisions. As for new strains, this is one of the factors that we simply have to monitor when making operational decisions,” he added.

An agreement on limiting oil production between OPEC countries and 11 non-cartel countries was signed five years ago – on December 10, 2016 – amid declining world energy prices. Then the countries participating in the agreement agreed to reduce the total production by 1.758 mln barrels compared to the level of October 2016.


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