Russia signals Opec and allies should raise oil output from June

The chief executive of the Russian Direct Investment Fund, Kirill Dmitriev, waits before a meeting of Russian President Vladimir Putin with representatives of the foreign business community on the sidelines of the Eastern Economic Forum in Vladivostok, Russia September 11, 2018. — Valery Sharifulin/Tass Host Photo Agency pic via Reuters
The chief executive of the Russian Direct Investment Fund, Kirill Dmitriev, waits before a meeting of Russian President Vladimir Putin with representatives of the foreign business community on the sidelines of the Eastern Economic Forum in Vladivostok, Russia September 11, 2018. — Valery Sharifulin/Tass Host Photo Agency pic via Reuters

MOSCOW, April 8 — One of the key Russian officials to foster a supply pact with Opec, Kirill Dmitriev, signalled today Russia wanted to raise oil output when it meets with Opec in June because of improving market conditions and falling stockpiles.

Dmitriev, head of the Russian state’s direct investment fund, was the first Russian official to predict a deal with Opec in 2016 and since then became a key defender of the pact despite pressure from domestic oil firms to drop the agreement.

Dmitriev, an envoy for Moscow in the Middle East in general and Saudi Arabia in particular, had in recent months said it was still too early to terminate output cuts, echoing the position of Opec’s de facto leader, Saudi Arabia.

But in an apparent change of position, Dmitriev said today supply cuts may not be required after June.

“It is quite possible that given the improving market situation and falling stocks, (Opec and its allies) could decide in June this year to abandon supply cuts and subsequently increase output,” Dmitriev said.

“This decision will not mean the end of the deal but a confirmation that participants continue their coordinating efforts when it is important not only to cut but to increase output depending on market conditions,” he said. — Reuters

 

 

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