Novak: all OPEC+ intend to fulfill the obligations

International historic agreement on the stabilization of the oil market is performed and the countries parties to the transaction have confirmed their intention to fulfil their obligations by 100%, said energy Minister Alexander Novak.

OPEC+ in may completed the deal by 87%. “Approximately 1.3 million, and several countries reached the agreement in full”, said Russian energy Minister Alexander Novak in interview to TV channel “Russia 24”. According to him, is “actively discussed” at the Ministerial meeting of OPEC+ Thursday, which is held on the results of monitoring of the oil market.

“All countries have committed themselves, confirmed the release of the 100% commitment and that within a few months, they may compensate for nedovolnye,” said Novak.

He noted that the success of the agreement confirmed the price of oil: since the agreement they have grown in 2 times, and the markets became considerably less of the excess oil. Current prices accurately reflect the situation on the market.

on Friday, 19 June, a barrel of European benchmark Brent is trading at $41,89 (+2,9% by the close of the previous trading session), American WTI — at $39,21 (+3.3 percent), according to trading in London at 9:00 GMT.

According to Novak, the balance of supply and demand of oil on the market can be reach by the end of June or in early July. This contributes to the removal of restrictions in the countries after passing the peak of the pandemic: growing industrial and transport activity, the increased demand for oil.

March 6, 2020, it became known about the termination of previous agreements OPEC+ 1 APR. In the end, oil prices fell more than 2 times. But OPEC and its allies, headed by Russia, together with the acceding countries 10-12 April 2020 agreed to gradually remove from the market the surplus of oil starting may 1. In the end, the framework of OPEC+ 23 countries agreed to cut production together at 9.7 million barrels per day in may-June. 9 more countries outside OPEC+ announced plans to reduce production to maintain a transaction — by 3.6 million barrels per day.

In June, the agreement was extended in July 2020. Then the reduction of oil under the agreement will be reduced to 7.7 million before the end of the year and then 5.8 million by the end of April 2022.