Russia’s energy ministry sees global oil demand and supply balancing in the next two months, the RIA news agency informed.
Leading oil producers are due to hold an online conference in around two weeks on how to further police joint efforts to steady a global oil market hammered by overproduction and a demand drop linked to the coronavirus pandemic.
According to the agency, the Ministry stated supply has already dropped by 14 million to 15 million barrels per day thanks to the OPEC+ deal and output cuts in other countries. Moreover, it estimates that the surplus stands at around 7-12 million barrels per day.
OPEC+ - a group made up of the Organization of the Petroleum Exporting Countries and other leading oil producers including Russia - agreed last month to cut their combined output by almost 10 million bpd, or roughly 10 percent of global production.
They also expected other large oil producers, such as the United States, Canada and Norway, to make additional cuts.
The RIA news agency reported that the energy ministry considers non-OPEC+ countries to have already cut output by 3.5 million to 4 million barrels per day.
RIA also said Russian oil production volumes were near the country’s target of 8.5 million daily barrels for May and June.
