Russia says lower oil supplies may offset the market within a year

US, WASHINGTON (ORDO NEWS) — Russia‘s Deputy Energy Minister Pavel Sorokin said lower oil supplies could stabilize the global market within a year or so, while demand that was hit by the Corona pandemic should be monitored.

Earlier this month, Sorokin told Reuters he expected to see the first signs of low oil production in high-cost projects around the world in four to six months.

“The market may balance very quickly, but not in a month or two, it will still take a year or more,” he told the Valdai Discussion Forum, an online economic conference held on Friday.

He said that oil production in the United States, the largest producer in the world, may drop 1.5 million barrels per day this year, with the price of oil ranging between 30 and 35 dollars a barrel.

Oil prices have fallen by nearly two-thirds this year after the collapse of talks earlier this month between the Organization of Petroleum Exporting Countries (OPEC) and other major crude producers, including Russia.

On Friday, Sorkin said that OPEC and the rest of the countries, in what is known as the OPEC + group, are still in contact. He stressed that OPEC + cannot cut oil production alone, hinting that the United States should join the cuts.

Kirill Dmitriyev, head of the Russian sovereign wealth fund, told Reuters earlier on Friday that a new OPEC + deal could be concluded if other countries joined it.


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