In more good news, Novak said that he expected oil demand to recover fully from the effects of the pandemic by the 2nd quarter of 2021. Even now the oil market is in a supply deficit, amounting to between 1.5 and 2 million bpd, which is helping to reduce inventories, the official said.
While Russia’s top oil man appears to be optimistic about the future of the oil market, his Saudi counterpart has taken a different stance, sending a stark warning to speculators who might want to make a profit on that market.
“Anyone who thinks they will get a word from me on what we will do next, is absolutely living in a La La Land... I’m going to make sure whoever gambles on this market will be ouching like hell,” Abdulaziz bin Salman told reporters at yesterday’s OPEC+ meeting, as quoted by Reuters.
OPEC+ ministers met last week to discuss the progress of their production cut agreement and next steps. As in previous meetings, the ministerial committee insisted on better compliance, even though the rate for August reached 101 %. The cut target remained unchanged at 7.7 million bpd. If Russia’s Novak is right, that should be enough to see a return to balance on oil markets as demand recovers. Not all, however, agree it will, now or ever.
Author: Irina Slav
